Nigeria’s vast gas wealth is yet to translate into affordable energy for industry. Despite possessing 215.19 trillion cubic feet of proven and probable gas reserves, the country’s manufacturers spent N1.34 trillion on alternative energy in 2025, a gap that Shell Nigeria Gas Limited (SNG) attributes largely to inadequate gas pipeline infrastructure.
This was the core message delivered by the Managing Director, Shell Nigeria Gas Ralph Gbobo represented by Asset Reliability and Integrity Manager, Samuel Ojo during a presentation titled “Gas for Manufacturing: Closing the Pipeline Infrastructure Gap to Improve Manufacturing Competitiveness” at the Manufacturers Association of Nigeria (MAN) Energy Security & Energy Efficiency Summit held in Lagos from 3-4 November 2026. According to SNG, inadequate pipeline infrastructure remains one of the biggest barriers to connecting Nigeria’s abundant gas resources with industrial demand, limiting manufacturers’ access to reliable, affordable and cleaner energy.
Data from the Global Energy Monitor shows Europe has about 353 kilometres of gas transmission pipeline per million people, compared with just 34km in Africa and only 6km in Sub-Saharan Africa. This means Europe has more than ten times the gas transmission pipeline infrastructure per capita of Africa, highlighting the scale of the infrastructure gap that must be bridged to unlock Africa’s gas resources.
According to SNG, the lack of sufficient pipeline infrastructure is imposing a significant cost burden on manufacturers. The company estimated that access to pipeline gas could cut energy costs by up to 70% compared with diesel-based self-generation, while also supplying fuel for both power generation and process heat applications, including boilers, steam systems and kilns.
“Manufacturers need reliable access to energy through gas pipeline infrastructure,” SNG stressed, noting that the economic benefit of natural gas depends on a viable pipeline connection and dependable gas supply. SNG added that its existing network is already demonstrating the value of such investment, linking gas supply to industrial demand and supporting manufacturers across key industrial clusters.
The company currently operates over 170km of pipeline infrastructure, supplying 60 million standard cubic feet of gas per day (60MMscfd), equivalent to about 300MW of power to 140+ industries across three states: Ogun, Abia and Rivers States.
The company explained that its gas delivery model provides the crucial distribution link to the factory gate from trunkline tie-in. This includes pressure reduction and metering facilities, distribution pipelines and customer connection, enabling safe and dependable gas supply that supports industrial productivity and growth.
Backbone is Growing, But More Needed
SNG acknowledged that government and private investment are building the network and can do more. On the government-led backbone, the OB3 pipeline, reported by NNPC to be in full operation, is now linking the eastern and western gas networks, while the Ajaokuta-Kaduna-Kano (AKK) pipeline is the next step for northern market access.
Also, the Escravos-Lagos Pipeline System (ELPS II) has an expanded design capacity of 2.3Bcf/d but needs compression to realize that capacity.
SNG has built distribution networks connecting industrial clusters, while factories themselves are investing in gas-utilizing equipment, creating the demand that supports network investment. This is backed by policy support including the Decade of Gas initiative, Midstream and Downstream Gas Infrastructure Fund (MDGIF) co-investment, and gas investment incentives.
The Next Step: Connect Clusters at Scale For the next phase, SNG called for a joint action plan and urged the Government to complete and commission more trunklines, coordinate permits, and direct eligible finance to viable infrastructure gaps.
SNG encouraged manufacturers to aggregate factory demand across industrial clusters, validate load profiles and equipment readiness, and contract credible demand that support further infrastructure investments.
Pipeline natural gas supports energy security and manufacturing competitiveness, and underpins food processing, fertilizer production and cold chain logistics. As a result, SNG argued, strengthening Nigeria’s gas infrastructure is fundamental not only to energy security, but also to food security, industrial growth and broader national resilience.
About Shell Nigeria Gas Limited (SNG)
Shell Nigeria Gas Limited (SNG) was established in 1998 as a wholly owned Shell company. It operates across eastern and western Nigeria, serving customers in Abia, Rivers and Ogun States, with expansion into Bayelsa State and other locations. SNG delivers natural gas through a distribution network of approximately 150 kilometres of pipeline infrastructure.
