SNG – Shell Nigeria Gas

Natural gas has the following advantages: 

Reliability: Natural gas supply is generally more reliable than liquid fuel supply in trucks because it is a continuous flow stream through the pipeline. All a customer need do is to just open the valve. 

Abundance & Availability: Natural gas is not imported, but is in abundant supply in Nigeria’s Niger Delta region, where it is found in gas reservoirs or produced along with oil as associated gas. 

Easy to Control: With natural gas, you can easily monitor and control your fuel/feedstock expenses and costs, without the fear of short-supply or spillage. 

No Need For Storage: There’s also no need for huge capital investment on storage facilities because natural gas flows from the wellhead through pipelines and processing systems to locations where it is required.

Handling: No physical handling is required. 

Flexibility: There are various types and sizes of burners and appliances available to suit different energy/utilization applications. 

More Environment-Friendly: Natural gas is clean, more environment-friendly, as it has much lower sulphur content than liquid fuels. It also burns more efficiently 

Natural gas can be used for any of these purposes: 

Power Generation: Natural gas is often used for power generation using turbines, micro turbines or gas generators. 

Industrial Use: Natural Gas is used for a variety of industrial processes e.g. space heating, raising of steam via boilers, furnace operations etc.

 As Feedstock: Natural gas is used as chemical feedstock for fertilizer and methanol production. 

For Transportation: Compressed Natural Gas (CNG) is used as fuel for Natural Gas Vehicles (NGV) like forklifts, cars and buses. it is especially attractive to organizations that operate large fleets of vehicles, enabling them to enjoy considerable economies of scale.

a)     How to get Natural Gas

If your organisation operates within or around the SNG’s operational areas of Agbara/Ota (Ogun State), Aba (Abia state), Port Harcourt (Rivers State) and some environs in Lagos State, then your chances of getting gas supply from Shell Nigeria Gas Limited are high.

It is very important that a potential gas customer contacts SNG at the early stage of project definition. This is to enable the alignment of the project schedules, to enable SNG start supplying gas to the customer on the very day the plant is ready to commence gas utilisation.

A new customer will usually go through these steps (highlighted below) before beginning to enjoy gas supply:

• Initial contact, usually an exploratory meeting between SNG and the potential customer to help understand the gas supply/demand opportunity
• Information exchange between parties
• Carrying out of Technical evaluation of prospect’s facility and cost estimates for pipeline construction.
• SNG carries out economic analysis of the project and Due Diligence.
• Signing of a Head of Terms
• A review of the detailed project design and schedule
• Negotiation and signing of a Gas Sales and Purchase Agreement (GSPA)
• Construction begins
• Plant/factory commissioning, gas starts to flow.

A very crucial stage in this process is the detailed project economic evaluation stage. Here, both SNG and the customer must demonstrate to each other that the project is economically viable and offers economic benefit(s) to both parties.

b)     Download Agreement template

(template to the provided)

c)      Gas supply questionnaire

(questionnaire to be provided)

d)     Guideline for the installation of customer stations

(downloadable template to be provided)

Request for an invoice

Request for a Mug balance

Download Agreement Renewal template 

Other enquiry