Predictable gas pricing targets introduced by Nigerian authorities are expected to significantly expand domestic production capacity, giving investors clearer forecasts for returns.
Shell Nigeria Gas (SNG) says recent reforms, including clearer pricing frameworks and reduced policy uncertainty, are already spurring growth in local gas production and investment.
The company made the remarks at the second business forum of the Association of Local Distributors of Gas held in Abuja, where stakeholders discussed expanding gas access to drive industrialisation.
Speaking on the panel “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand,” SNG Managing Director Ralph Gbobo, represented by Head of Gas Distribution Chukwuka Amos-Ejesi, praised the Petroleum Industry Act as a turning point.
The Act reinforces gas’s role in Nigeria’s energy strategy through the Network Code for transparency and the Domestic Gas Supply Obligation, which requires producers to prioritise the domestic market.
Mr Gbobo added that improved pricing, transportation tariffs, and competitive licensing have strengthened investor confidence and encouraged commitment to local projects.
He further highlighted SNG’s experience, noting the company’s leap of faith over 20 years ago in Agbara-Ota despite modest initial demand. That persistence helped create industrial clusters and attract long-term capital.
Participants at the forum, themed “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” emphasised the need for clear, supportive and credible policy frameworks to boost gas utilisation.
Incorporated in 1998 as a wholly owned Shell subsidiary, SNG currently serves more than 150 customers across Abia, Bayelsa, Ogun and Rivers states. It connected two additional firms in Ogun State to its network in the first half of the year.
The company stressed that aligning demand, supply certainty, infrastructure and commercial clarity remains essential for building a sustainable domestic gas market.
