BY FRONTLINE REPORTERS
Shell Nigeria Gas (SNG) has highlighted the expansion of pipeline infrastructure and the market-shaping role of gas distributors as critical factors in transforming natural gas from a policy objective into a practical energy solution for Nigerian industries.
Speaking at the second Business Forum of the Association of Local Distributors of Gas (ALDG) in Abuja, SNG Managing Director, Ralph Gbobo, said sustained investments in gas distribution infrastructure have played a pivotal role in driving industrial growth and deepening gas utilisation across the country.
Gbobo, who was represented by SNG’s Head of Gas Distribution, Chukwuka Amos-Ejesi, made the remarks during a panel session titled “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand.”
Reflecting on the company’s early investments, he noted that when SNG commenced operations in the Agbara–Ota industrial corridor more than two decades ago, demand for natural gas was significantly lower than it is today.
“When SNG started in Agbara–Ota over 20 years ago, demand was nowhere near what it is today,” he said. “The economics was not perfect, but there was a leap of faith anchored on Nigeria’s industrialisation trajectory. That decision has proven right.”
According to him, SNG’s experience demonstrates that industrial growth can be stimulated when demand ambitions are matched with reliable supply, enabling infrastructure and clear commercial frameworks.
“Our persistence has shown that when demand ambition, supply certainty, infrastructure and commercial clarity come together—even if not perfectly at the outset—they create industrial clusters capable of attracting long-term investment,” he said.
“Sustainability and bankability emerge over time as gas utilisation deepens and investor confidence grows.”
The forum, themed “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” brought together industry leaders and stakeholders to explore strategies for leveraging the country’s vast gas resources to accelerate industrialisation and economic growth.
Participants at the session stressed the importance of clear, supportive and credible policy frameworks to encourage investment and improve gas adoption across industries.
Gbobo described the enactment of the Petroleum Industry Act (PIA) as a major turning point for Nigeria’s gas sector, noting that it has significantly reduced policy uncertainty and strengthened investor confidence.
He said the legislation reinforced the strategic role of gas in Nigeria’s energy transition and industrial development agenda while introducing critical market instruments such as the Network Code and the Domestic Gas Supply Obligation (DGSO).
According to him, the Network Code has enhanced transparency and operational stability within the domestic gas market, while the DGSO requires producers to allocate a portion of their gas output to the local market, thereby improving supply availability.
“The introduction of clearer pricing frameworks for gas supply and transportation, alongside a more transparent and competitive licensing regime, has strengthened market confidence,” he said.
“These measures have improved producer confidence, particularly for domestic gas projects, and demonstrated the government’s commitment to positioning gas as a key driver of industrial development.”
Established in 1998 as a wholly owned Shell gas distribution company, SNG currently serves more than 150 customers across Abia, Bayelsa, Ogun and Rivers states.
The company continues to partner with governments and other stakeholders to expand access to cleaner and more affordable energy for industries. In the first half of this year alone, SNG connected two additional companies in Ogun State to its gas distribution network, further extending its reach and supporting industrial productivity.
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2026-06-11