Shell seeks to Partner OGFZA in Gas Distribution

Shell Nigeria Gas (SNG) Limited has indicated interest in collaborating with the Oil and Gas Free Zones Authority (OGFZA) for the supply of gas. 

The collaboration comes as SNG begins to diversify into offshore activities and gas distribution.

The move for a collaboration was announced at a business meeting between a delegation of SNG, Shell Energy Nigeria and Oil and Gas Free Zones Authority (OGFZA) at the authority’s office in Abuja.

The delegation made a case for the removal of bottlenecks for accessibility to enable them carry out their enumeration exercise in Onne/Ikpokiri Oil and Gas Free Zone in Rivers State.

Managing Director, Shell Nigeria Gas, Mr. Ralph Gbobo informed the meeting that SNG’s main business is downstream gas distribution to industries in Nigeria with a presence across the nation at Otta, Aba and Port Harcourt and currently penetrating Bayelsa state, stating that there is an ongoing effort to collaborate with the government of Oyo state. 

He disclosed that SNG currently distributes about 60-70 million scuffs daily. 

The Managing Director and Chief Executive Officer of OGFZA, Bamanga Usman Jada, assured the delegation of the Authority’s readiness for collaboration, stating that OGFZA is responsible for promoting, securing and sustaining investments in the nation’s oil and gas free zones. 

Jada said the authority was committed to remove all bottlenecks that might cause a hinderance to ease of doing business in the zones. 

Adding that the Authority would continue to provide a conducive environment for investors operating in the zones. 

According to him, “the success of investors is a national success.”

He urged them to explore other gas hubs in the Oil and Gas Free Zones such as Liberty Oil and Gas Free Zone in Akwa Ibom State and Orashi Energy City in Imo state which has recently been declared a free zone under the regulation of OGFZA by President Bola Ahmed Tinubu. 

The newly declared free zone is considered the largest in Nigeria, with a land mass of over 140,000 hectares and a huge gas deposit. 

Jada further disclosed that Orashi Energy City has the potential to attract over US$8b of Foreign Direct Investment. 

Jada applauded SNG for their interest in committing more resources and investments into Nigeria and their confidence to partner with OGFZA, assuring investors of protection and security of their investments in Nigeria.

He clarified the notion that investors are exiting Nigeria to neighbouring countries, affirming that investors are not leaving Nigeria but rather diversifying and making new investments into a more environmentally friendly energy sources stating that gas is very critical to national development. 

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