L–R: Chairman, Association of Local Distributors of Gas (ALDG), and Managing Director, Axxela Gas Distribution, Kehinde Alabi; and Head of Gas Distribution, Shell Nigeria Gas, Chukwuka Amos-Ejesi, receiving a commendation plaque on behalf of SNG Managing Director, Ralph Gbobo, in recognition of his professional and diligent service on the Governing Board of the Association, at the Association of Local Distributors of Gas (ALDG) Business Forum in Abuja.
Shell Nigeria Gas (SNG) has identified expanded gas pipeline infrastructure, supportive regulatory frameworks and market-driven distribution networks as critical factors in unlocking Nigeria’s vast natural gas resources and accelerating industrial growth.
Speaking at the second business forum of the Association of Local Distributors of Gas (ALDG) in Abuja, SNG executives shared lessons from the company’s nearly three decades of experience in gas distribution, emphasizing the importance of long-term investment and policy consistency in building a sustainable domestic gas market.
During a panel session titled “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, said the company’s early investments in gas infrastructure were driven by confidence in Nigeria’s industrialisation prospects despite initially uncertain market economics.
“When SNG began operations in the Agbara-Ota industrial corridor more than 20 years ago, demand for natural gas was significantly lower than it is today,” Amos-Ejesi said. “The investment required a long-term view, but it has demonstrated that combining market demand, reliable supply, infrastructure development and commercial clarity can create industrial clusters capable of attracting sustained capital.”
According to SNG, the gradual expansion of gas utilisation across industrial sectors has reinforced the commercial viability of domestic gas distribution, helping transform gas from a policy objective into a practical energy solution for manufacturers and other businesses.
The forum, themed “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” brought together industry leaders, policymakers and stakeholders to examine strategies for increasing gas accessibility and supporting economic development.
Participants highlighted the need for stable and transparent regulatory frameworks to encourage investment across the gas value chain.
SNG pointed to recent policy reforms, including the enactment of the Petroleum Industry Act (PIA), as a significant catalyst for growth in Nigeria’s domestic gas market. The company noted that the legislation strengthened the role of gas in the country’s energy strategy while introducing mechanisms such as the Domestic Gas Supply Obligation and the Network Code, which promote supply reliability, market transparency and operational efficiency.
The company also cited clearer gas pricing frameworks, transportation regulations and a more transparent licensing regime as factors improving investor confidence in domestic gas projects.
Nigeria holds one of Africa’s largest natural gas reserves and has increasingly positioned gas as a transition fuel to support industrialisation, improve energy access and reduce dependence on more carbon-intensive fuels.
Founded in 1998 as a wholly owned Shell subsidiary, SNG currently supplies natural gas to more than 150 industrial customers across Abia, Bayelsa, Ogun and Rivers states. The company said it added two new industrial customers to its gas distribution network in Ogun State during the first half of 2026, reflecting growing demand for cleaner and more cost-effective energy solutions among Nigerian manufacturers.
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