Shell breaks ground on Nigerian gas infrastructure project
Shell has broken ground on a gas development and distribution project in Nigeria's southwest Oyo state, the region's commissioner for energy and mineral resources, Temilolu Sen Ashamu, said on social media on November 21.
Shell's Nigeria Gas business signed a memorandum of understanding in October 2020 with the Oyo state on expanding the distribution of gas in the region, targeting the supply of 50mn ft3/day of gas to consumers. At that time, it was stated that the project was expected to be realised on a build-operate-own-and-transfer basis.
According to Ashamu, the project includes the construction of a pressure reduction and metering station, in order to deliver gas to industrial, manufacturing and commercial users, and provide stable power generation for industry and households within the state.
"The distribution and availability of gas, which is a cheaper, cleaner and more environmentally friendly source of energy, will engender a change in approach to energy and also boost the state's economy," Ashamu said. "We expect first gas from 2024!"
Oyo is the first most populous state in Nigeria, with a population of over 5.5mn. Its economy is primarily based on agriculture.