Shell’s Nigerian unit has signed an agreement with Oyo state in the south of the country to construct a pipeline delivery system to serve industries in the state at a cost of $100 million, the Oyo government said on Friday.
The agreement signed in London with Shell Nigeria Gas (SNG) is critical to the state’s efforts to boost industrialization and economic development while improving access to power for both residential and industrial areas.
The project, first agreed in 2020, 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.
“This gas project worth about $100 million, 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. Ownership will be transferred to Oyo State after 20 years,” Oluseyi Makinde, governor of Oyo state, said in a statement.
Shell Nigeria Gas Ltd., incorporated in 1998, operates a gas transmission and distribution network of over 138 kilometers (86 miles) and serves more than 300 customers in industrial hubs across southern Nigeria states.