Precious Anga
Lagos — Shell Nigeria Gas, SNG, has identified the expansion of gas distribution infrastructure as a critical requirement for accelerating industrial growth, deepening domestic gas utilisation and unlocking the full economic value of Nigeria’s vast natural gas resources.
The company said sustained investment in gas pipelines and distribution networks remains essential to connecting industries to reliable energy supplies, improving manufacturing competitiveness and supporting the Federal Government’s industrialisation agenda.
Speaking at the second business forum of the Association of Local Distributors of Gas, ALDG, in Abuja, Managing Director of SNG, Ralph Gbobo, said Nigeria’s experience over the past two decades demonstrates that strategic investments in gas infrastructure can create long-term industrial value and stimulate economic development.
Represented by the Head of Gas Distribution, Chukwuka Amos-Ejesi, Gbobo noted that the company’s early investments in the Agbara-Ota industrial corridor were driven by confidence in Nigeria’s long-term industrial potential, despite relatively low gas demand at the time.
According to him, that decision has since contributed to the growth of one of Nigeria’s most active industrial clusters, with increasing gas utilisation helping manufacturers access cleaner, more efficient and cost-effective energy solutions.
He explained that the development of a sustainable gas market depends on the alignment of several key factors, including reliable gas supply, supporting infrastructure, growing industrial demand and a stable commercial framework capable of attracting long-term investment.
Gbobo stated that as gas utilisation expands and market confidence strengthens, distribution projects become increasingly bankable, creating opportunities for additional investments across the value chain.
The forum, themed “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” brought together industry operators, policymakers and investors to discuss strategies for improving domestic gas accessibility and accelerating industrial development.
Stakeholders at the event emphasised that despite Nigeria’s position as one of Africa’s largest holders of natural gas reserves, significant infrastructure gaps continue to limit access to gas by industries and businesses across many parts of the country.
Industry experts noted that expanding pipeline networks and strengthening last-mile gas distribution systems would be vital to supporting manufacturing activities, reducing dependence on more expensive energy alternatives and enhancing energy security.
The discussions also highlighted the role of gas distribution companies as market enablers capable of connecting producers to end-users and creating the demand base needed to support new investments in gas development and transportation infrastructure.
According to participants, creating a more robust gas distribution ecosystem will require continued collaboration between government agencies, investors and private-sector operators, supported by transparent regulations and commercially viable market structures.
Gbobo acknowledged the impact of recent policy reforms on the domestic gas sector, noting that regulatory improvements have helped reduce investment uncertainty and strengthened confidence among existing and prospective investors.
Nigeria has continued to position natural gas as a transition fuel capable of supporting economic growth, industrialisation and energy security while providing a lower-emission alternative for power generation and industrial processes.
Analysts believe that achieving these objectives will depend largely on the country’s ability to move beyond gas reserves and focus on developing the infrastructure required to deliver gas efficiently to industries, businesses and households.
With growing demand for cleaner energy solutions and increasing interest in domestic gas utilisation, industry stakeholders say investments in distribution infrastructure will remain central to transforming Nigeria’s gas resources into tangible economic and industrial benefits.
The consensus emerging from the forum was that expanding gas access, strengthening distribution networks and maintaining policy consistency will be key to attracting capital, supporting industrial clusters and advancing Nigeria’s ambition of building a gas-powered economy.Headline options:
