The Construction of Shell Gas Pipeline – New Update

An update and pictures of the construction of the Shell Gas Pipeline, located at KM 10, Eleka Area, Lagos-Ibadan Expressway, Oyo State. The Oyo State Government-Shell Nigeria Gas Infrastructure Development and Distribution project was initiated in September 2020 following a meeting between Governor Seyi Makinde and the management of Shell Nigeria Gas (SNG). Subsequently, a Memorandum of Understanding (MoU) was signed between the Oyo State Government and SNG to construct a Pressure Reduction and Metering Station (PRMS) alongside ancillary gas supply pipelines.

Shell Nigeria Gas (SNG) is funding the construction of the Pressure Reduction and Metering Station (PRMS) and ancillary gas supply pipelines under a Build, Own, Operate, and Transfer (BOOT) agreement. After 20 years, SNG will transfer ownership of the infrastructure to Oyo State.

The Oyo State Government-Shell Nigeria Gas Infrastructure Development and Distribution project, awarded to Slot Engineering for Earthworks and Civil Engineering, was flagged off on 17 November 2022 for preliminary surveys and earthworks. The final investment agreement, worth about $100 million, was signed in May 2024 and work has commenced on the project in full with first gas expected to be distributed in Oyo State within the next 18 months.

Upon completion, the project will supply gas to the Oyo State Independent Power Project (IPP), industrial, manufacturing and commercial entities and serve new emerging industrial corridors and industrial parks/zones while providing stable power generation for industrial and residential use in Oyo State. Meanwhile, the IPP is a public-private partnership between the Oyo State Government and Elektron Energy; Phase 1, which is 5 MW, is now completed and will be commissioned on Friday, 6 December 2024. 

Below is a slideshow of pictures of the ongoing construction of the Shell Gas Pipeline: