The Energy Republic September Edition

SHELL INTERVIEW
ED Ubong I MANAGING DIRECTOR OF SHELL NIGERIA GAS
“Shell to Facilitate More Investment for Nigerian Gas
to industries, Power Projects” – Ubong
In this interview, the Managing Director of Shell Nigeria Gas (SNG) and President of Nigerian Gas
Association (NGA), ED Ubong, talks to The Energy Republic about Shell's operational excellence in
Nigeria and the company's new investment focus on expanding its distribution networks, as well
as investing in gas-to-industries and power projects. Interview by Ndubuisi Micheal Obineme
TER: Since 1998, Shell Nigeria Gas (SNG) has been involved in the
downstream distribution of gas to major industries in Nigeria, as
well as providing clean, reliable, and low-cost alternatives to liquid
fuel. Please could you provide more insight on SNG's operational
excellence in the Nigerian gas sector?
Ubong: Shell Nigeria Gas (SNG) was incorporated in 1998 for the
marketing and distribution of natural gas to companies in Nigeria.
It is the first wholly-owned gas distribution subsidiary of an
international energy company in Nigeria. The company is certified in
ISO 14001 - a certification that shows it operates at the highest
industry standards.
Shell Nigeria Gas currently operates a growing world-class gas
transmission and distribution network of over 150km in Nigeria. It
operates several distribution systems including Agbara-Ota in Ogun
state, the Aba Cluster in Abia State, and the Port Harcourt Cluster in
Rivers State. Today, SNG serves about 150 industrial and commercial
customers. Our gas distribution networks are capable of distributing
more than 150 million cubic feet of natural gas a day to over 300
industrial and commercial customers.
In 2021, SNG supplied more than 400 megawatts (MW) equivalent of
gas-generated power in Nigeria and completed the final phase of its
20km domestic gas pipeline expansion project in Abia State,
connecting Agbor Hill, Osisioma, and Ariaria industrial zones.
The project has also enabled the supply of pipeline gas to Ariaria
Market Energy Solutions Limited, the Independent Power Project
(IPP) consortium that provides electricity to the popular Ariaria
market in Abia State. Ariaria International Market is one of the
largest leather shoe-making and open stall markets in West Africa,
with over 37,000 shops and an estimated one million traders.
By the end of 2021, SNG had agreements in place with 165
customers across six states: Ogun, Abia, Rivers, Bayelsa, Oyo, and
Lagos. The agreements will enable the supply of reliable, lowercarbon
energy that drives industrialization, employs both the
skilled and unskilled local population, as well as directly improve
internally generated revenues in these states.
With gas, we are driving industrialization, providing employment,
and improving internally generated revenues in the states where
we operate.
TER: Nigeria's gas potential is yet to be fully explored. According
to a report, gas development in the country stands at about 25%
of the proven reserves. There are opportunities along the entire
upstream, midstream, and downstream value chain in the
Nigerian gas sector. How is SNG working with government and
industry stakeholders to accelerate domestic gas utilization incountry?
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THE ENERGY REPUBLIC I SPECIAL EDITION