(AGENDAWATCHDOG) – The Oyo state government has signed a memorandum of understanding (MoU) with Shell Nigeria Gas for the laying of gas pipelines in the state in order to improve energy and power supply.
The MoU was signed by Seyi Makinde, governor of Oyo, and Ed Ubong, Shell managing director, at the executive council chamber of the governor’s office in Ibadan, on Wednesday.
“In the bid to aid industrial development and to as well increase the economic potentials of the state, yesterday (Wednesday) evening, the Oyo state government signed a memorandum of understanding (MoU) with Shell Nigeria Gas (SNG) to develop a gas master plan project for Oyo state,” the state government said this via a tweet on Thursday.
According to the state government, the project includes the construction of pressure reduction and meter station (PRMS); fixing of ancillary gas supply pipelines and distribution facilities from the PRMS to serve customers within the state
It said the project will be funded by Shell on a build, own, operate and transfer (BOOT) arrangement.
“Upon completion, SNG would operate the facility and transfer it to Oyo state government after 15 years of operation,” the government said.
Makinde appreciated the management of SNG for their continuous support and assured them of the state government’s support.
“Oyo state is open for business and we try to transact our business transparently. We allow our decisions and actions to be driven by logic and data,” he said.
“So, we know for a fact that Shell Nigeria Gas coming here to extend the gas infrastructure to Oyo state is a decision that should have been taken a long time ago.”
Meanwhile, Ubong said the development will aid the industrialisation effort of the state amid the ongoing efforts by the Makinde administration to expand Oyo’s economy.
“Gas is the key to boosting industrialisation. I am proud that SNG is here. The vision of the governor is to see how we can rapidly industrialise the state and with a clear vision and support, we will get that done,” he said.
Ubong further said the partnership with Oyo is an opportunity to further promote gas as a more reliable, cleaner and cost-effective alternative to liquid fuels in the state.
Source: The Cable
POTENTIAL IMPACT: The Memorandum of Understanding (MoU) between the Oyo State Government and Shell Nigeria Gas (SNG) will no doubt boost Governor Seyi Makinde’s industrialization template for the state as well as expand its economic potentials. It is a partnership that will be hugely beneficial to both parties and the country in general.