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Home Companies Company News

Rivers State partners Shell on gas distribution.

Fikayo Owoeye by Fikayo Owoeye
December 27, 2017
in Company News
Osagie Okunbor

Osagie Okunbor, Managing Director, Shell Petroleum Development Company

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The Rivers State Government and Shell Nigeria Gas (SNG) have signed a Memorandum of Understanding (MoU) for the distribution of gas to industries operating in Port Harcourt area and its environs.

SNG Managing Director, Ed Ubong signed on behalf of the company while Richard Hart, Permanent Secretary in the Ministry of Energy and Natural Resources, signed on behalf of the state government

Contents of the MOU

The MoU sets out broad terms and conditions to guide co-operation between the two parties in the development of new gas distribution opportunities in the Greater Port Harcourt area and its environs in addition to its existing gas distribution network in the State.

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Why this is major

Regular gas supply for industries means they will have savings on energy costs, as gas supply is much cheaper than power generated from  diesel or petrol. Goods produced in Nigeria are often more more expensive compared to those imported, djue to the high cost of production.

Stable energy supply, could also lead to an influx of industries to the state. New jobs will then be created. The state will also benefits from increased revenue, both from the companies and taxes paid by the newly employed.  State government support also guarantees protection of gas pipeline expansion projects. Incresed employment also lowers crime and youth restiveness in host communities where the industries operate.

 

Shell Nigeria Gas Ltd is a fully owned Shell company incorporated in 1998 for the downstream distribution of gas to industries in Nigeria . The company operates several gas distribution systems including Agbara-Ota in Ogun state, the Aba Cluster in Abia State the Port Harcourt Cluster in Rivers State.

Rivers state was created on the 27th of May 1967, and is one of the states in the South South region of Nigeria. Rivers state has vast amount of oil and gas reserves.


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Tags: Gas distributionNews ReviewRivers StateShell Nigeria
Fikayo Owoeye

Fikayo Owoeye

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via fikayo.owoeye@nairametrics.com

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