This is according to a statement by Temilolu Seun Ashamu, the commissioner for energy and mineral resources in Oyo State through his official LinkedIn account on Monday, November 21.
In his statement, Mr. Ashamu said the Oyo State gas infrastructure development and distribution project is an Oyo State government and Shell Nigeria Gas Limited collaborative opportunity to build a new gas distribution infrastructure network in the state.
In October 2020, Shell Nigeria Gas (SNG) announced that it had signed a memorandum of understanding (MoU) with the Oyo State government, targeting the distribution of cleaner and more reliable gas energy to industries in the state through a distribution network with the potential for around 50 million standard cubic feet (scf) of gas per day, starting from the state capital, Ibadan, as the point of first entry.
The MoU was signed at the Oyo State Government House last Wednesday by the managing director of SNG, Ed Ubong, and the Oyo State governor, Oluseyi Makinde.
At the time, Makinde said the agreed terms in the MoU will lead to the signing of the Build-Operate-Own-and-Transfer agreement so that businesses can begin to reap the benefits of a steady source of energy. According to Ubong, the partnership is an opportunity to further improve domestic gas utilization in Nigeria, enabling local industries to thrive and create employment opportunities for Nigerians.
News continues after this ad
According to Mr. Ashamu’s statement, the project, for the construction of a pressure reduction and metering station will deliver gas to industrial, manufacturing, and commercial companies, and provide stable power generation for industrial and residential use within Oyo state. He wrote:
“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. We expect the first gas from 2024!”
For the record: In its 2022 World Oil Outlook, the Organization of Petroleum Exporting Countries (OPEC) said natural gas demand is projected to increase by 19.6 million barrels of oil equivalent per day (mboe/d) to 56.3 mboe/d in 2045, supported by demand in all sectors.
News continues after this ad
Natural gas is also expected to replace coal and traditional biomass use in coming years and remain a long-term fuel of choice. The outlook also says the percentage of natural gas in the global energy mix would increase from 23% in 2021 to almost 24.5% in 2045.
The federal government plans to make use of compressed natural gas (CNG) as the fuel for transportation and liquefied petroleum gas (LPG), as the fuel for cooking, captive power, and small industrial complexes under the national gas expansion program (NGEP).
Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |