Manufacturers are increasingly embracing natural gas as rising diesel prices continue to pressure production costs and profitability across Nigeria’s industrial sector.
This was disclosed during a business and investment forum organised recently by Shell Nigeria Gas in Port Harcourt, Rivers State, where stakeholders across the energy and manufacturing sectors explored opportunities to reduce operating costs and improve productivity through gas adoption.
The price of diesel has continued to rise lately due to the ongoing tension in the Middle East.
In a statement, Shell Nigeria Gas disclosed that the event coincided with the onboarding of two new industrial customers in Agbara, Ogun State—Intercontinental Distillers Limited II and Rumbu Industries Limited—into Shell Nigeria Gas’ expanding distribution network.
The company stated that the addition brings the number of firms using its gas solutions to over 150 across Abia, Bayelsa, Ogun and Rivers States.
In a keynote address delivered by SNG’s Head of Gas Distribution, Chukwuka Amos-Ejesi, on behalf of the Managing Director, Ralph Gbobo, the company said manufacturers switching to gas were already benefitting from lower and more stable energy costs.
“Companies that transition to natural gas consistently benefit from lower and more predictable energy costs, reduced exposure to liquid fuel price volatility, enhanced operational uptime, improved planning certainty, and a stronger competitive offering for their customers.
“Our focus is to provide solutions that deliver immediate economic value while supporting long-term growth,” he said.
SNG officials also stressed the company’s expansion plans in Rivers State and outlined investment opportunities in gas distribution, industrial supply and power generation.
The company said natural gas offered economic and environmental advantages over alternative energy sources such as diesel, especially at a time when manufacturers are grappling with high energy costs and unstable power supply.
Stakeholders at the forum commended the initiative, saying wider gas adoption could help revive industrial activities in the Niger Delta region.
The Board Chairman of the Niger Delta Chambers of Commerce, Industry, Trade, Mines and Agriculture, Idaere Gogo Ogan, represented by the Board Secretary, Chief Solomon Edebiri, said effective gas utilisation could transform industrial operations in the region.
“Effective utilisation of gas can significantly reshape industrial practices and revive business activity in the region,” he stated.
He added that more than 500 companies in the Niger Delta had shut down operations in recent years due to prevailing economic and operational challenges.
The forum also witnessed the signing of gas sales and purchase agreements with Boskel Nigeria Limited and Bluefinn Global Resource Limited in Rivers and Bayelsa states, respectively, further expanding Shell Nigeria Gas’ footprint in the region.
Meanwhile, the company said the gas supply to Intercontinental Distillers Limited II and Rumbu Industries Limited was equivalent to about 4MW of electricity, a development expected to improve production efficiency and lower operating costs.
According to Gbobo, the milestones reflect the company’s commitment to deepening gas distribution and supporting industrial growth in Nigeria.
“These milestones underscore our commitment to expanding our gas distribution footprint, deepening customer engagement, and supporting Nigeria’s industrial growth,” he stated.
Participants at the forum included representatives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Bank of Industry, the Rivers State Investment Promotion Agency, the Manufacturers Association of Nigeria, the Port Harcourt Chamber of Commerce, and the Niger Delta Chambers of Commerce, Industry, Trade, Mines and Agriculture.
Founded in 1998 as a wholly owned subsidiary of Shell, Shell Nigeria Gas currently supplies gas to industrial customers in four states across the country.
SOURCE: PUNCH NEWS PAPER
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