President Bola Tinubu has pledged to enhance the business environment in Nigeria’s oil and gas sector, assuring investors of his administration’s commitment to facilitating the ease of doing business. During the virtual inauguration of three significant gas infrastructure projects on Wednesday, Tinubu emphasized that creating a more investment-friendly climate will ultimately improve Nigerians’ standard of living.
The inaugurated projects include the expanded AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the 23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline, located in Delta and Imo states. These projects align with the Decade of Gas Initiative and aim to maximize the value of Nigeria’s abundant gas resources while eliminating gas flaring and promoting industrialization.
Tinubu highlighted that once operational, these projects would supply approximately 500 million standard cubic feet per day (MMscf/d) of gas to the domestic market, marking a significant 25% increase in gas supply. This boost will benefit the power sector, gas-based industries, and other critical segments of the economy.
President Tinubu commended the efforts of the Nigerian National Petroleum Company Limited (NNPC), Sterling Oil Exploration & Energy Production Company Limited, and Seplat Energy Plc for their strategic vision in executing these value-adding projects. He reaffirmed his government’s determination to leverage Nigeria’s vast gas resources to drive economic growth and create employment opportunities.
Moreover, Tinubu noted significant progress in incentivizing gas development through presidential directives, including the Presidential Compressed Natural Gas (CNG) initiative aimed at transitioning from petrol and diesel to gas as a cleaner and more cost-effective fuel alternative.
In his remarks, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, praised the removal of petrol subsidies, which has spurred investments in upstream and midstream gas development. He underscored gas as Nigeria’s transition fuel towards achieving green energy sufficiency by 2060.
NNPC’s Group CEO, Mele Kyari, also highlighted the rapid execution of these projects, achieved within 11 months. He emphasized that with adequate resources and commitment, significant progress can be made in transforming Nigeria’s gas resources into economic value, although some projects may still require longer timelines due to manufacturing constraints.
The AHL Gas Processing Plant 2, an expansion of the Kwale Gas Processing Plant, is designed to process 200MMscf/d of rich gas and deliver lean gas through the OB3 Gas Pipeline, reducing dependency on LPG imports. The ANOH Gas Processing Plant, a 300MMscf/d capacity plant, will process gas from the Assa North-Ohaji South field, increasing domestic gas supply and boosting power generation and industrialization.
Finally, the ANOH-OB3 CTMS Gas Pipeline Project involves the construction of a transmission pipeline to evacuate dry gas for delivery into the OB3 pipeline system, ensuring substantial gas supply for various economic sectors.