Stable Policies and Infrastructure Crucial for Gas Sector Expansion, Shell Explains

Stable Policies and Infrastructure Crucial for Gas Sector Expansion, Shell Explains.

Shell has emphasized the importance of developing infrastructure to drive the growth of Nigeria’s domestic gas sector and ensure the effective monetization of the resource. According to Ralph Gbobo, Managing Director of Shell Nigeria Gas (SNG), infrastructure is essential for efficiently transporting gas from producers to consumers in a transparent and cost-effective manner.

Gbobo made these remarks during a panel session at the recently concluded Nigeria International Energy Summit (NIES) in Abuja. He described infrastructure as the foundation of a thriving gas industry, pointing to the Escravos-Lagos Pipeline System (ELPS) as a prime example of infrastructure that supports the domestic gas market.

“If we can fully implement our regulations, particularly the Network Code, and maintain a stable network where investors can achieve returns, I am confident that more players will enter this space,” Gbobo stated.

Established in 1988, SNG has been a pioneer in developing gas infrastructure in Nigeria. The company has constructed gas distribution systems in Rivers, Abia, and Ogun states, supplying gas to over 140 domestic, industrial, and commercial customers. In 2023, SNG signed an agreement with the Oyo State Government to build a gas distribution network aimed at delivering gas to businesses within and beyond the state.

READ: Nigerian Lawyer Femi Falana Demands $5 Million from Facebook Owner Over Privacy Breach

Gbobo stressed that expanding Nigeria’s domestic gas market is a collective effort requiring collaboration across various sectors. “The task of growing the domestic gas market is not the responsibility of a few players alone. It requires contributions from regulatory bodies, upstream, midstream, and downstream sectors. The key to unlocking these contributions lies in implementing the right policies,” he explained.

READ: Nigeria-China Alliance in Tea Production Could Boost Economic Growth – Senator Ireti Kingibe

He further highlighted the importance of clear policies and incentives to attract investors. “Implementing transparent policies and incentives encourages more investors to participate in the domestic gas market, whether in gas production or infrastructure development. Investors need assurance of a stable regulatory and fiscal environment to safeguard their investments,” Gbobo added.

Shell Companies in Nigeria have made significant investments across the entire gas value chain—upstream, midstream, and downstream—recognizing the potential of gas to drive industrial and economic growth in the country.

Stable Policies and Infrastructure Crucial for Gas Sector Expansion, Shell Explains.

admin

Professional freelancer and webmaster.