Nigeria can significantly increase its domestic gas consumption by strengthening infrastructure and creating a more efficient gas distribution network, according to Shell Nigeria Gas (SNG).
Speaking at the second Business Forum of the Association of Local Distributors of Gas (ALDG) in Abuja, SNG emphasized that improved pipeline networks and active participation by gas distributors are essential for making natural gas more accessible to industries across the country.
Representing SNG Managing Director Ralph Gbobo at the event, Head of Gas Distribution Chukwuka Amos-Ejesi noted that long-term investments in gas infrastructure have demonstrated the sector’s potential to support industrial growth.
He reflected on the company’s early operations in the Agbara-Ota industrial corridor, stating that gas demand at the time was relatively low compared to current levels. Despite the challenges, the company invested in anticipation of future industrial expansion, a decision he said has since yielded positive results.
According to him, sustainable growth in the gas sector depends on a combination of reliable supply, supportive infrastructure, market demand, and clear commercial arrangements. He added that confidence from investors tends to grow as gas utilisation increases and the market matures.
The forum, themed “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” brought together industry stakeholders to discuss strategies for improving gas availability and supporting industrial development.
Participants stressed the importance of stable and transparent policies to encourage investment and increase gas adoption across the economy.
Gbobo highlighted the role of the Petroleum Industry Act (PIA) in creating a more favourable environment for gas development. He said the legislation helped reduce uncertainty by reinforcing the importance of gas in Nigeria’s energy strategy and introducing frameworks such as the Domestic Gas Supply Obligation and the Network Code, which support market transparency and supply reliability.
He also pointed to reforms in gas pricing and licensing processes as factors that have improved investor confidence and strengthened the business case for domestic gas projects.
Established in 1998, Shell Nigeria Gas currently supplies natural gas to more than 150 industrial customers across Abia, Bayelsa, Ogun and Rivers states. The company said it continues to expand its network, connecting two additional businesses in Ogun State during the first half of 2026.
Industry experts believe that continued investment in infrastructure, supportive regulations and stronger market participation will be crucial if Nigeria is to fully harness its vast natural gas resources and accelerate industrial growth.
