Shell Nigeria Gas (SNG) has outlined key measures that could help Nigeria increase its natural gas utilisation and unlock greater industrial growth across the country.
The company shared its position during the 2nd Business Forum of the Association of Local Distributors of Gas (ALDG), held in Abuja.
Speaking on behalf of SNG Managing Director, Ralph Gbobo, the company’s Head of Gas Distribution, Chukwuka Amos-Ejesi, said the expansion of pipeline natural gas infrastructure and the market-making role of gas distributors are essential to transforming Nigeria’s gas potential into practical energy solutions for industries.
During a panel session titled “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand,” Gbobo reflected on the company’s early investments in gas distribution.
He recalled that when SNG began operations in the Agbara-Ota industrial corridor more than 20 years ago, demand for natural gas was significantly lower than it is today.
According to him, the decision to invest at the time was based on confidence in Nigeria’s industrialisation prospects, despite challenging economic conditions.
He noted that persistence and long-term planning have demonstrated that industrial growth can be achieved when demand ambition, reliable supply, enabling infrastructure and commercial certainty are aligned.
Gbobo explained that sustainability and bankability often develop gradually as gas utilisation increases 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 discuss how natural gas can support industrial development and economic growth.
Participants at the event agreed on the need for clear, supportive and credible policy frameworks that encourage wider gas adoption across the country.
Gbobo identified the Petroleum Industry Act (PIA) as a major milestone in Nigeria’s gas sector development.
He said the legislation strengthened the role of natural gas within the country’s energy and industrial strategy while reducing policy uncertainty.
According to him, the PIA introduced important frameworks such as the Network Code, which promotes transparency and stability in the domestic gas market, and the Domestic Gas Supply Obligation, which requires producers to allocate gas for local consumption.
He added that clearer pricing structures for gas supply and transportation, along with a more transparent licensing regime, have improved confidence among investors and gas producers.
These reforms, he said, have encouraged investment in domestic gas projects and reinforced the government’s commitment to using gas as a catalyst for industrial development.
Established in 1998 as a fully owned Shell gas distribution company, SNG currently supplies natural gas to more than 150 customers across Abia, Bayelsa, Ogun and Rivers states.
The company continues to work with governments and other stakeholders to provide cleaner and more affordable energy solutions for industries.
In the first half of this year, SNG expanded its network by connecting two additional companies in Ogun State to its gas distribution system.
The company believes that continued investment in infrastructure, supportive regulations and strong partnerships will be critical to improving gas access and accelerating Nigeria’s industrial transformation.
