Nigeria can harness its gas resources for industrialisation if it achieves stable regulatory enforcement, fair pricing, and infrastructure ownership models in the sector, Managing Director Shell Nigeria Gas (SNG) Ralph Gbobo has said.
Speaking at the Energy Week of the Lagos Section of the Society of Petroleum Engineers (SPE) in Lagos recently, Ralph said investors need “a stable, fast and transparent implementation” of rules, while a fair pricing regime could be achieved with “the right incentives to grow pipeline gas,” which would also attract more investments. On infrastructure ownership models, he called for the completion of ongoing projects and ensuring the reliability of the Escravos-Lagos Pipeline System through “clear service standards.”
He said the government could also encourage investments in gas distribution through “demand aggregation.” “We need to create a friendly business environment and a clear plan (e.g., industrial parks or designated zones) so demand is clustered. That makes it easier for a distributor to get a license, invest, and build shared infrastructure that serves many industries—not just one or two.”
Ralph added, “Public–private partnership is crucial. Government backing helps planning and delivery. This model can also support industrial parks and other ways to aggregate demand.”
His advice follows rise in prices of liquefied petroleum gas (LPG) or cooking gas as a result of the U.S.-Israeli war on Iran, which halted energy exports from the Middle East.
Prices jumped on Tuesday as Tehran attacked ships and energy facilities, closing navigation in the Gulf and forcing production stoppages from Qatar to Iraq.
European gas prices soared as much as 40% before paring gains, adding to a 40% surge on Monday.
READ ALSO: Cooking Gas Soars As Iran Crisis Disrupts Production, Shipping
Nigeria imports a significant portion of its cooking gas despite holding massive natural gas reserves. As of late 2024, reports indicated that roughly 20% to 47% of consumed LPG was imported.
Although a net producer of gas, Nigeria has historically imported 50% or more of its cooking gas, with a large share coming from the US and Equatorial Guinea.
While some data showed up to 80% domestic production in early 2025, the country still relies on imports to bridge the gap in supply.
