By Ayomide Otitoju
Nigeria can unlock the full industrial potential of its vast natural gas reserves through stable regulatory enforcement, fair pricing structures, and sustainable infrastructure ownership models, Managing Director of Shell Nigeria Gas, Ralph Gbobo, has said.
Speaking during Energy Week organised by the Society of Petroleum Engineers Lagos Section, Gbobo stressed that investors require “a stable, fast and transparent implementation” of regulatory frameworks to boost confidence in the sector.
He noted that establishing a fair pricing regime, supported by appropriate incentives for pipeline gas development, would help stimulate further investment. Gbobo also emphasised the need to complete ongoing gas infrastructure projects and ensure the reliability of the Escravos-Lagos Pipeline System through clearly defined service standards.
According to him, government policies that encourage demand aggregation could further drive investments in gas distribution.
“We need to create a friendly business environment and a clear plan, such as industrial parks or designated zones, so demand is clustered,” Gbobo said. “That makes it easier for distributors to obtain licences, invest, and build shared infrastructure capable of serving multiple industries rather than just one or two.”
He added that public–private partnerships would be essential to achieving these goals, noting that government support could improve planning and project execution, particularly for industrial parks and other initiatives designed to concentrate demand.
Gbobo’s remarks come amid rising global prices of Liquefied Petroleum Gas (LPG), commonly used as cooking gas, following escalating tensions linked to the Iran–Israel conflict, which disrupted energy exports from parts of the Middle East.
Gas prices surged earlier in the week after Iran reportedly attacked ships and energy facilities, leading to shipping disruptions in the Gulf and forcing production shutdowns across several regional exporters, including Qatar and Iraq. European gas prices briefly spiked by as much as 40 percent before easing.
Despite possessing some of the world’s largest natural gas reserves, Nigeria continues to rely on imports to meet domestic LPG demand. As of late 2024, estimates indicated that between 20 percent and 47 percent of the country’s LPG consumption was imported.
Historically, Nigeria has imported more than half of its cooking gas supply, with major volumes sourced from the United States and Equatorial Guinea. While domestic production increased significantly in early 2025, accounting for up to 80 percent of supply, imports remain necessary to bridge the remaining gap in demand.
