Shell Nigeria Gas Limited (SNG) has highlighted the critical need for expanded gas pipeline infrastructure to reduce energy costs and boost Nigeria’s manufacturing competitiveness. During the Manufacturers Association of Nigeria (MAN) Energy Security & Energy Efficiency Summit in Lagos, SNG representatives emphasized that inadequate pipeline networks are forcing manufacturers to spend excessively on alternative energy sources. The company estimated that access to pipeline gas could cut energy costs by up to 70% compared to diesel-based self-generation, making it a more affordable and cleaner option for industrial use.
SNG operates over 170 kilometers of pipeline infrastructure, supplying 60 million standard cubic feet of gas per day to more than 140 industries across Ogun, Abia, and Rivers States. The company’s existing network demonstrates the value of such investments, linking gas supply to industrial demand and supporting key industrial clusters. However, SNG stressed that more needs to be done, including government-led initiatives like the OB3 pipeline and the Ajaokuta-Kaduna-Kano (AKK) pipeline, to further expand access to natural gas.
To address the infrastructure gap, SNG called for a joint action plan involving government, manufacturers, and investors. The company urged the government to complete and commission more trunklines, coordinate permits, and direct eligible finance to viable infrastructure gaps. Manufacturers were encouraged to aggregate demand across industrial clusters and validate equipment readiness to support further investments in gas infrastructure. SNG argued that strengthening Nigeria’s gas infrastructure is essential not only for energy security but also for food security, industrial growth, and national resilience.