The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, yesterday clarified that the federal government had no hand in the abandonment of plans to build a 1,200km subsea gas pipeline by the Dangote Group.....KINDLY READ THE FULL STORY HERE▶
Ekpo, in a statement signed by his Spokesman, Louis Ibah, said that the decision to build or abandon the project was solely a business decision of the Dangote Group, which was taken long before the inauguration of the President Bola Tinubu-led administration.
“The Federal Government, under President Tinubu, is committed to creating an environment that encourages investors who are willing to invest in projects in the gas value chain.”
“As a matter of fact, the Federal Government has taken deliberate steps over the years to encourage and stimulate investment in the Gas Sector by approving various policies, such as the Gas Pricing and Domestic Demand Regulations (2023); the Natural Gas Pipeline Tariff Regulations (2023); the Nigerian Gas Transportation Network Code; the National Nigerian Gas Masterplan; the National Gas Policy (2017) and the Petroleum Industry Act (PIA) 2021,” the statement explained.
According to the statement, these policies and laws provide a conducive environment for private sector investment in domestic gas development. He noted, for instance, that the establishment of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), through the PIA 2021, was to support more private sector investment in gas infrastructure development.
“Contrary to the view expressed by the VP Oil and Gas of Dangote Group, there is no provision in the PIA, or its predecessor policies and / or legislation, that discourages private sector investment in gas infrastructure. The PIA offers significant incentives for private entities to invest in the Gas Midstream and Downstream sectors. The Federal Government encourages private investment in gas infrastructure development, and several projects have been commissioned under President Tinubu’s administration,” the statement further said.
Ekpo listed notable examples of the positive impact of the government’s concerted effort to stimulate private sector investment in the gas value chain to include among others, the resolution of gas supply issues to major projects like the Geometric Power Aba Limited Power Plant and the Brass Fertiliser and Petrochemical Company Limited, which he said demonstrates government’s support for local investors, with groundbreaking novel approaches to resolving issues.
The Minister reiterated that any private entity interested in investing in the Gas Midstream and Downstream sectors is free to do so, with government incentives available to encourage investments that contribute to national economic growth and development.
