By Ndubuisi Micheal Obineme
Shell Nigeria Gas Limited (SNG), a subsidiary of Shell Plc, has announced that it will facilitate more investments for gas-to-industries and power projects to unlock the full potential of the Nigerian gas resources.
In Nigeria, gas development only accounts for about 25% of the 209.5 Trillion Cubic Feet (TCF) proven reserves with over 600 TCF of unproven gas reserves. There are opportunities along the entire upstream, midstream, and downstream value chain in the Nigerian gas sector, which haven’t been fully utilized. Nigeria’s domestic natural gas consumption was about 15 billion cubic meters (bcm) in 2019, and it is expected to increase to about 20 billion cubic meters by 2030. While Liquefied Natural Gas (LNG) account for the majority of export and it is expected to increase from 32bcm to 41bcm by 2030.
Speaking in an exclusive interview with The Energy Republic, Managing Director of Shell Nigeria Gas (SNG), Mr. ED Ubong, said that the company will increase investments in gas-to-industries and power projects as part of its efforts to contribute to developing a credible gas-powered economy in Nigeria.
According to him, “Gas-to-industry and power is an area we want to deepen, as we have seen that industrial clusters allow communities to flourish, developing economic activities like trading and manufacturing. This is a sustainable ecosystem that spurs development and employment. At the same time, gas is more resistant to theft and sabotage, which has been one of the major concerns surrounding oil pipelines.
“SNG will continue to make domestic infrastructure investments under the right commercial conditions and birth domestic gas projects that will be major game-changers in Nigeria’s quest for cleaner energy sufficiency, industrialization, and economic growth in supporting the manufacturing and industrial sector.
“Shell is investing in a gas portfolio that will increase supply for Nigeria’s growing industrial and commercial sectors, as well as to international customers via an expanding network of plants, pipelines, and export terminals.
“At Shell, we recognize that local content is key to surviving a post-covid world and Shell will continue to invest in this space. We remain committed to building capacity and competence in the country and to investing funds that enable more Nigerians to participate directly or indirectly in the gas value chain and support the local economy”.
Shell Nigeria Gas (SNG) is the first wholly-owned gas distribution subsidiary of an international energy company in Nigeria. SNG currently operates a growing world-class gas transmission and distribution network of over 150km in Nigeria. It operates several distribution systems including Agbara-Ota in Ogun state, the Aba Cluster in Abia State, and the Port Harcourt Cluster in Rivers State.
Today, SNG serves about 150 industrial and commercial customers. Its gas distribution networks are capable of distributing more than 150 million cubic feet of natural gas a day to over 300 industrial and commercial customers.