The Ministry of Petroleum Resources (Gas) has provided clarification to the media on reports from a senior Dangote Group official that the company abandoned a 1,200 km projected undersea gas pipeline because of government policies. The ministry stated that the company made a business choice and that government policies were not the reason for the abandonment.
The decision was made well in advance of the President Tinubu administration, according to a statement from the Ministry to the Minister of Petroleum Resources (Gas), signed by the Spokesperson.
Besides, he said, the administration of President Tinubu is determined to support investors in the nation’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, during a webinar hosted by Nairametrics.” “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.”
Policies from the PIA that encourages gas investments
He continued with a summary of President Tinubu’s actions to promote investment in Nigeria’s gas value chain, which include:
- 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 noted that the Petroleum Industry Act (PIA) and its antecedent policies and regulations do not contain any provisions that hinder private sector investment in gas infrastructure, in contrast to the opinion voiced by the Vice President of Oil and Gas at Dangote Group.
The statement claims that just as the federal government promotes private investment in the development of gas infrastructure, with multiple projects already put into service under President Tinubu’s administration, the PIA provides substantial incentives for private entities to invest in the Gas Midstream and Downstream sectors.
