FG not responsible for Dangote pipeline abandonment – Minister
The Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, has responded to media reports about the Dangote Group's abandonment of a proposed 1,200km subsea gas pipeline, claiming that government policies were not to blame but rather a business decision made by the company.This was revealed in a statement signed by the Spokesperson for the Minister of Petroleum Resources (Gas), Louis Ibah, according to Nairametrics.
He clarified that the decision was a business decision made before President Tinubu's administration, not as a result of government policies.
He also stated that the current administration is committed to increasing investment in the country's gas value chain.
It stated, "The Honourable Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has been drawn to the recent statement attributed to the Dangote Group's VP Oil and Gas, regarding the abandonment of plans to build a 1,200km subsea gas pipeline due to government policies.
"Hon. Ekpo notes that the Dangote Group's decision to build or abandon the project was solely a business decision made long before the inauguration of President Bola Ahmed Tinubu's 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 also listed President Tinubu's initiatives that encourage investment in Nigeria's gas value chain, which include:
Gas Pricing and Domestic Demand Regulations (2023),
Natural Gas Pipeline Tariff Regulations (2023)
The Nigerian Gas Transportation Network Code
The National Nigerian Gas Masterplan, the National Gas Policy (2017),
The Petroleum Industry Act (PIA) 2021.
Contrary to the views expressed by Dangote Group's Vice President of Oil and Gas, the Petroleum Industry Act (PIA) and its predecessor policies do not contain provisions that discourage private sector investment in gas infrastructure. The Ministry clarified that these policies are intended to facilitate and promote investment in the sector, rather than to impede it.
According to the statement, the Petroleum Industry Act (PIA) offers 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 underway during President Tinubu's administration. This demonstrates a commitment to improving the gas value chain and attracting additional investments.
Last week, Vice President of Dangote Industries, Mr. Devakumar Edwin, explained that the decision to abandon the 1,200-kilometer subsea gas pipeline was based on several key factors.
He stated that at the time, government policy prohibited a single entity from operating in the upstream, midstream, and downstream sectors.
This limitation influenced the decision-making process for the subsea gas pipeline project by limiting operational flexibility and integration for companies such as Dangote Group.
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