The Shell Nigeria Gas has attributed the increase in gas production in the domestic market to recent changes to policy and pricing strategies.
The firm stated that there has been an increase in investments in Nigeria’s domestic gas industry due to reforms made regarding pricing strategies and the reduction in policy uncertainty.
Addressing a panel discussion on creating a bankable gas distribution ecosystem during the second forum of the Association of Local Distributors of Gas in Abuja, Shell Nigeria Gas Managing Director, Ralph Gbobo, pointed out that reforms, particularly those brought about by the Petroleum Industry Act, have transformed the industry positively.
In his address to the forum via his Head of Gas Distribution, Chukwuka Amos-Ejesi, Gbobo observed that reforms such as the Network Code and Domestic Gas Supply Obligation have created more certainty in the gas market.
He also said the implementation of pricing and licensing policies has made the sector appealing to foreign investors, prompting producers to invest in local gas facilities and ensuring government policies to make gas an effective tool for development.
In his presentation, Gbobo emphasized the need for the coordination of demand, supply, and infrastructure, citing the early investment by Shell in the development of gas pipelines despite the challenges it faced, which have led to the development of industrial estates.
The workshop, with the theme ‘From Gas Abundance to Gas Access,’ provided a platform for discussion on how to increase the use of gas, with participants emphasizing the need for credible policies.
Shell Nigeria Gas currently has over 150 customers in Abia, Bayelsa, Ogun, and Rivers states and recently extended its services to two more firms in Ogun State.
