Shell Nigeria seals 20-year domestic gas distribution deal with NNPC

Shell Nigeria Gas (SNG) has signed a 20-year agreement deal with Nigerian Gas Marketing Corporation (NGMC), a subsidiary of Nigerian National Petroleum Corporation (NNPC), for the domestic distribution of gas to industrial customers and manufacturing plants in Lagos and Ogun states.

Bamidele Odugbesan, SNG’s media relations manager, said in a statement on Sunday.

SNG said it will also extend its distribution network to Badagry to serve a new market in the border community.

Ed Ubong, SNG’s managing director, said the new partnership will deepen domestic gas utilisation in Nigeria, and enhance industrialisation in Agbara, Igbesa and Ota areas of Ogun state.

“This agreement will enable local industries to thrive and create employment opportunities for Nigerians. We look forward to continuing to grow domestic gas distribution to industries and manufacturing plants in Ogun state and other parts of Nigeria while unleashing the industrial potential of Badagry,” Ubong said.

He acknowledged the support of the Nigerian Gas Company (NGC) and NGMC over the last 20 years in helping SNG to continue to provide gas to industries and manufacturing plants in Nigeria.

Commenting on the new development, Faruk Usman, managing director of NGMC, said the agreement would enable the parties to further unlock the potential of the domestic gas market.

Usman said: “We continue to work with credible partners to accelerate the marketing and distribution of natural gas to major industrial users in Nigeria in line with the vision of the federal government and the steers of the group managing director of NNPC.”

Also speaking on the long-term deal, Osagie Okunbor, country chair of Shell companies in Nigeria, said the knock-on effects of the gas distribution agreement would bring “tremendous benefits to the economy” in SNG’s states of operation and Nigeria.

Okunbor said: “Shell companies in Nigeria will continue to turn Nigeria’s domestic gas opportunities into reality through our strategic intent to develop enough gas to meet our current commitments and future growth plans.”

The agreement, SNG said, will drive industrialisation, improve internally generated revenue (IGR) and provide skilled and unskilled employment.