Why Dangote abandoned 1,200km subsea gas pipeline project –Minister

By Adewale Sanyaolu

Minister of State Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, has clarified that the decision of the Dangote Group to either abandon or build a 1,200km subsea gas pipeline was purely a business decision and not due to Government policies.

The Minister’s clarification is sequel to the claims made by the Vice President of Dangote Industries Limited, during a webinar hosted by Nairametrics.

A statement by the Minister’s Spokesman,Mr.Louis Ibah,quoted Ekpo as saying that that the decision by Dangote not to go ahead with the project was taken long before the inauguration of the President Bola Ahmed Tinubu-led administration.

The Minister maintained that 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 .

According to Ekpo, 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, he said, 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.

“Contrary to the view expressed by Devakumar, 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.

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.

The  Minister of State Petroleum Resources (Gas) wishes to reiterate 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,”