Shell Nigeria Gas Limited has urged the Federal Government to speed up the development of domestic gas pipeline infrastructure to support Nigeria’s Decade of Gas initiative. The company argues that expanding pipeline connectivity is essential for manufacturers to access Nigeria’s vast natural gas reserves, which currently stand at 215.19 trillion cubic feet of proven-plus-probable reserves. Despite this abundance, manufacturers are spending heavily on alternative energy due to limited access to reliable pipeline gas, with expenditures reaching approximately N1.34tn in 2025.
In a recent presentation at the Manufacturers Energy Security & Energy Efficiency Summit in Lagos, Shell highlighted inadequate gas pipeline infrastructure as a major obstacle to unlocking Nigeria’s gas potential for manufacturing. The company’s Managing Director, Ralph Gbobo, represented by Samuel Ojo, noted that Europe has over 10 times the gas transmission pipeline infrastructure per capita compared to Africa. Closing this gap, he said, would improve access to reliable, affordable, and cleaner energy, reducing dependence on liquid fuels and enhancing industrial competitiveness.
Shell presented data showing that pipeline gas has an electricity cost index of 30%, compared to 100% for diesel-powered self-generation and 62% for grid electricity combined with diesel backup. This means manufacturers using gas for power could reduce their energy costs by 70% compared to diesel. However, the company emphasized that actual savings depend on viable pipeline connections and dependable gas supplies, which vary by location.
Shell also highlighted ongoing infrastructure developments, such as the Obiafu-Obrikom-Oben pipeline, which connects Nigeria’s eastern and western gas networks, and the Ajaokuta-Kaduna-Kano Pipeline, aimed at extending gas access to northern Nigeria. Additionally, the Escravos-Lagos Pipeline System II has expanded its design gas transmission capacity to 2.3 billion standard cubic feet per day, strengthening gas supply to industrial customers. The company urged the government to complete and commission trunklines, streamline permitting processes, and channel financing towards commercially viable infrastructure projects.
Shell Nigeria Gas has invested in gas distribution infrastructure, building over 150 kilometers of pipelines and supplying natural gas to more than 140 manufacturers across Ogun, Abia, and Rivers states. The company’s gas supply to industries stands at 60 million standard cubic feet per day, equivalent to 300 megawatts of power. Shell stressed that a more extensive and reliable gas network would enhance manufacturing competitiveness and strengthen critical sectors such as food processing, fertilizer production, and cold-chain logistics.