By G9ija

Shell Nigeria Gas (SNG), at the weekend signed a Memorandum of Understanding (MoU) with the Oyo State Government to facilitate domestic gas infrastructure development. 

The pact targets the distribution of cleaner and more reliable gas energy to industries in the state through a distribution network with potential for around 50 million standard cubic feet of gas per day, starting from the state capital, Ibadan, as the point of first entry.

The MoU which was signed at the Oyo State Government by Managing Director of SNG, Ed Ubong and the state governor, Oluseyi Makinde, set out broad terms and conditions to guide co-operation between the two parties for the project development and delivery.

  The governor described the agreement with SNG as critical in the state’s efforts to boost industrialisation and enhance economic development while improving access to power for both residential and industrial areas in the state. “We believe that the agreed terms in the MoU will lead to the signing of the Build-Operate-Own-and Transfer agreement so that businesses can begin to reap the benefits of a steady source of energy.”

SNG’s Managing Director, Ed Ubong said, “The partnership is an opportunity to further improve domestic gas utilisation in Nigeria, enabling local industries to thrive and create employment opportunities for Nigerians.”

In a related development, SNG has commissioned an indigenous contractor, Gredor Nigeria Limited, to begin the construction of the gas pipeline infrastructure to deliver gas to the Nigeria Content Development and Monitoring Board Industrial Park in Polaku, Bayelsa State. SNG had earlier in the year acquired the lease of one hectare of land in Polaku for the gas project which will supply gas for industries in the park and the environs. The project is expected to be delivered within six months.

Ubong said the Polaku project would boost industrialisation in Bayelsa State and provide employment opportunity for skilled and unskilled local population in addition to directly improving internally generated revenues in the state.

He said, “The project will increase the over 150 industrial and commercial customers in Nigeria who currently receive SNG’s supply of natural gas through gas infrastructure that we have built with our partners and local stakeholders.”