The Oyo State Government and Shell Nigeria Gas (SNG) have signed an agreement worth over $100 million to develop a gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state.
A statement released on Friday by Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, disclosed that SNG will build and operate the gas distribution network which will serve customers across Oyo State for 20 years.
According to the statement, the project will start with the construction of gas distribution infrastructure along a 15km pipeline route, adding that it will grow to deliver up to 60 million standard cubic feet of gas per day across the state.
On his part, the Managing Director SNG, Ralph Gbobo, said the agreement was a significant milestone for SNG and Oyo State to boost economic activities in Nigeria by supplying industries and manufacturers with natural gas, a more reliable, cost-efficient and environmentally friendly source of energy.
Moreover, Seyi Makinde, the governor of Oyo State, wrote on his X account that the deal was signed in London, adding that the project worth about $100 million.
He said the project also involves the construction of a Pressure Reduction and Metering Station (PRMS) and laying of pipelines by SNG on a Build-Own-Operate-Transfer (BOOT) basis.
In addition, the managing Director of the Shell Petroleum Development Company of Nigeria Ltd and Chairman, Shell Companies in Nigeria, Osagie Okunbor said: