The Ministry of Petroleum Resources (Gas), Ekperikpe Ekpo has addressed media reports regarding the Dangote Group’s abandonment of a proposed 1,200km subsea gas pipeline, stating that government policies were not responsible but a business decision for the company.
This was disclosed in a statement signed by the Spokesperson to the Minister of Petroleum Resources (Gas), Louis Ibah, according to Nairametrics.
He clarified that the decision was a business choice made prior to President Tinubu’s administration and not a result of government policies.
He further emphasized that the current administration is committed to fostering investment in the country’s gas value chain.
It stated, “The attention of the Honourable Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has been drawn to the recent statement attributed to the VP Oil and Gas of Dangote Group, regarding the abandonment of plans to build a 1,200km subsea gas pipeline due to government policies.
“Hon. Ekpo notes 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.
“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 further listed initiatives by President Tinubu that encourage investment in Nigeria’s gas value chain, including:
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.
It was stated that, contrary to the views expressed by the Vice President of Oil and Gas at Dangote Group, there are no provisions in the Petroleum Industry Act (PIA) or its predecessor policies that discourage private sector investment in gas infrastructure. The Ministry clarified that these policies are designed to facilitate and promote investment in the sector, rather than hinder it.
According to the statement, the Petroleum Industry Act (PIA) provides significant incentives for private entities to invest in the Gas Midstream and Downstream sectors.
The federal government is actively encouraging private investment in gas infrastructure development, with several projects already commissioned under President Tinubu’s administration. This reflects a commitment to enhancing the gas value chain and attracting more investments.
last week, Vice President of Dangote Industries, Mr. Devakumar Edwin explained that the decision to abandon the plan for the 1,200km subsea gas pipeline was based on several key factors.
He stated that, at the time, government policy did not permit a single entity to operate across the upstream, midstream, and downstream sectors.
This limitation influenced the decision-making process regarding the subsea gas pipeline project, as it restricted operational flexibility and integration for companies like Dangote Group.
