Precious Anga
Lagos — Shell Nigeria Gas (SNG) says recent pricing and regulatory reforms are strengthening investor confidence and accelerating growth in Nigeria’s domestic gas sector.
Speaking at the Association of Local Distributors of Gas (ALDG) Business Forum 2026 in Abuja, SNG Managing Director, Ralph Gbobo, said policy reforms have reduced uncertainty and created a more predictable investment environment for gas projects.
Represented by the Head of Gas Distribution, Chukwuka Amos-Ejesi, Gbobo identified the Petroleum Industry Act (PIA) as a major turning point for the industry.
“The introduction of gas-focused policies, notably the Petroleum Industry Act, marked a turning point. By reinforcing the role of gas in Nigeria’s energy and industrial strategy and embedding instruments such as the Network Code, a critical framework that governs the operations of the domestic gas market and ensures transparency and stability, and the Domestic Gas Supply Obligation, which compels gas producers to allocate gas to the domestic market, the PIA significantly reduced policy ambiguity around gas development,” he said.
According to him, reforms in pricing and licensing have improved market confidence and encouraged producers to invest in domestic gas supply.
“The introduction of clearer pricing frameworks for gas supply and transportation and a more transparent and competitive licensing regime has also strengthened market confidence. Together, these measures have improved producer confidence, particularly for domestic gas projects, and signalled the government’s strong commitment to gas as a driver of industrial development,” Gbobo added.
He noted that Shell’s experience in gas distribution highlights the importance of aligning supply, infrastructure and market demand to build a sustainable gas economy.
Reflecting on the company’s early investments in the Agbara-Ota industrial corridor, he said:
“When SNG started in Agbara–Ota over 20 years ago, demand was nowhere near what it is today. The economics were not perfect, but there was a leap of faith anchored on Nigeria’s industrialisation trajectory. That decision has proven right.”
Gbobo said long-term investments made despite initial challenges helped create industrial clusters and attract fresh capital.
“SNG’s persistence proved that when demand ambition, supply certainty, enabling infrastructure, and commercial clarity come together, even if not perfectly at the start, it creates industrial clusters that can grow and attract long-term capital.
“Sustainability and bankability emerge over time, as utilisation deepens and confidence builds,” he stated.
The forum, themed ‘From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives’, brought together industry stakeholders to explore strategies for expanding gas access and supporting industrialisation.
Participants stressed the need for clear, credible and investor-friendly policies to unlock the full potential of Nigeria’s gas sector.
Shell Nigeria Gas currently supplies more than 150 customers across Abia, Bayelsa, Ogun and Rivers states and recently connected two additional companies in Ogun State to its gas distribution network.
This article was originally posted at sweetcrudereports.com
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