The Rivers State Government and Shell Nigeria Gas (SNG) have signed a Memorandum of Understanding (MoU) for the distribution of gas to industries operating in Port Harcourt area and its environs.
The Managing Director of Shell Nigeria Gas, Ed Ubong signed on behalf of the company while Richard Hart, Permanent Secretary in the Ministry of Energy and Natural Resources, signed on behalf of the state government.
The MoU sets out broad terms and conditions to guide co-operation between the two parties in the development of new gas distribution opportunities in Port Harcourt in addition to its existing gas distribution network in the State.
Regular gas supply for industries means they will have savings on energy costs, as gas supply is much cheaper than power generated from diesel or petrol. Goods produced in Nigeria are often more expensive compared to those imported, due to the high cost of production.
Stable energy supply, could also lead to influx of industries to the state thereby creating new jobs. The state will also benefits from increased revenue, both from the companies and taxes paid by the newly employed. State government support also guarantees protection of gas pipeline expansion projects. Increased employment also lowers crime and youth restiveness in host communities where the industries operate.