By Ayomide Otitoju
Shell Nigeria Gas has identified the expansion of natural gas infrastructure and stronger support for gas distribution networks as critical measures for increasing natural gas utilisation across Nigeria.
The company made the submission at the 2nd Business Forum of the Association of Local Distributors of Gas held in Abuja, where industry stakeholders examined strategies for improving access to gas and accelerating industrial growth.
Speaking at the forum, Managing Director of Shell Nigeria Gas, Ralph Gbobo, represented by Head of Gas Distribution, Chukwuka Amos-Ejesi, said pipeline infrastructure and the market-making role of gas distributors remain essential to translating Nigeria’s vast gas resources into practical energy solutions for industries.
Addressing a panel session titled “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand,” Gbobo reflected on the company’s early investment in the Agbara–Ota corridor more than two decades ago.
“When SNG started in Agbara–Ota over 20 years ago, demand was nowhere near what it is today,” he said, noting that the decision to invest was driven by confidence in Nigeria’s industrialisation prospects despite uncertain market conditions at the time.
According to him, sustained investment and market development have demonstrated that aligning demand growth, reliable supply, enabling infrastructure and commercial viability can attract long-term capital and drive industrial expansion.
He stressed that sustainability and bankability emerge over time as gas utilisation deepens and investor confidence strengthens.
The forum, themed “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” brought together industry leaders and stakeholders to explore ways of leveraging natural gas to support industrialisation and economic development.
Participants at the panel session underscored the importance of clear and credible policy frameworks to encourage greater gas adoption across the country.
Gbobo highlighted the impact of the Petroleum Industry Act, describing it as a major turning point for the domestic gas market.
He said the legislation reinforced the strategic role of gas in Nigeria’s energy mix and introduced key frameworks such as the Network Code and the Domestic Gas Supply Obligation, both of which have improved transparency, stability and supply reliability in the sector.
According to him, clearer pricing mechanisms for gas supply and transportation, alongside a more transparent licensing regime, have further enhanced investor confidence and strengthened support for domestic gas projects.
“These measures have improved producer confidence and signalled government’s strong commitment to gas as a driver of industrial development,” he said.
Established in 1998 as a wholly owned Shell gas distribution company, Shell Nigeria Gas currently serves more than 150 customers across Abia, Bayelsa, Ogun and Rivers states.
The company said it continues to work with governments and other stakeholders to expand access to cleaner and more affordable energy solutions for industries, adding that it connected two additional companies in Ogun State to its gas distribution network during the first half of the year.
