The Oyo State government, in collaboration with Shell Nigeria, has sealed a $100 million contract for the development and distribution of gas infrastructure under the Build-Own-Operate-Transfer (BOOT) model.
Governor Seyi Makinde announced the milestone via his X platform, revealing that the signing ceremony took place in London.
Makinde provided insights into the project, highlighting its scope and anticipated impact on the state’s industrial and energy landscape.
“We were in London to finalize the investment agreement for the Oyo State Government-Shell Nigeria Gas Infrastructure Development and Distribution project,” stated Governor Makinde.
“This transformative gas project, valued at approximately $100 million, encompasses the establishment of a pressure reduction and metering station (PRMS) alongside pipeline installations by Shell Nigeria Gas (SNG) under a Build-Own-Operate-Transfer arrangement.
“After a period of 20 years, ownership will be seamlessly transferred to Oyo State,” Makinde wrote on his X platform.
Governor Makinde expressed optimism about the project’s potential to catalyze economic growth and energy access within the state.
He outlined the timeline for implementation, anticipating the commencement of gas supply to industrial, manufacturing, commercial entities, and the independent power project in Oyo State within the next 18 months.
The partnership between the Oyo State government and Shell Nigeria signifies a strategic collaboration aimed at advancing sustainable development and enhancing energy infrastructure across the region.
