… urges private entities to explore PIA, Gas Pricing & Domestic Demand Regulations (2023), other gas sector opportunities
Oredola Adeola
Rt. Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), urged the Dangote Group to explore opportunities in the gas midstream and downstream sectors, highlighting government incentives aimed at fostering investments for national economic growth, rather than accusing the administration of neglecting the 1,200km subsea gas pipeline project.
The Minister made this known in response to a recent statement attributed to Devakumar Edwin, Vice President, Oil and Gas of Dangote Group, during a webinar hosted by Nairametrics regarding the abandonment of plans to build a 1,200km subsea gas pipeline due to government policies.
Louis Ibah, spokesman for the Minister of State Petroleum Resources (Gas) made this known in a statement obtained by Advisors Reports on Tuesday.
Hon. Ekpo in the statement noted that the decision to build or abandon the project was solely a business decision of the Dangote Group, taken long before the inauguration of the President Bola Ahmed Tinubu-led administration.
According to him, 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.
He said, “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 & 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.
“These policies and laws provide a conducive environment for private sector investment in domestic gas development.
“The PIA established the Midstream and Downstream Gas Infrastructure Fund (MDGIF) to support more private sector investment in gas infrastructure development.
The Minister emphasised that 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.
He said, “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.
Hon. Ekpo emphasised that notable examples of the positive impact of the FGN’s concerted effort to stimulate private sector investment in the Gas value chain, include resolution of gas supply issues to major projects like the Geometric Power Aba Limited Power Plant and the Brass Fertilizer and Petrochemical Company Limited demonstrates its support for local investors, with groundbreaking novel approaches to resolving issues.
He 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.
