The Federal Government spent about $1 billion in the last one year on the development of gas infrastructure meant to fast-track the economic development of the country, Diezani Allison-Madueke, the Minister of Petroleum Resources, said on Tuesday at the 2012 Ministerial Platform organised by the Ministry of Information.
“In the last year, we have made significant progress in gas infrastructure, gas supply growth and stimulation of gas industrialisation,” she said.
“Specifically, in this time frame, we have invested close to a billion dollars in almost 1,000km of gas pipeline development.
“The investment, which is the most expensive in the last 30 years, is aimed at developing the sector; creating job opportunities and making Nigeria the regional hub for gas-based industries.”
Allison-Madueke said the ministry was embarking on a massive expansion of the gas pipelines and facilities, so as to achieve the gas-to-power initiative.
“The 130km, 24-inch Oben-Geregu gas pipeline has been completed and commissioned and this will open up gas access to the Geregu Independent Power Plant (IPP) and Dangote Obajana cement plant,” the minister said.
“The 50km Ipe Annang-Calabar Pipeline will also open up the Calabar axis to gas and other industries.”
She disclosed that there were other ongoing projects across the country that would ensure adequate power supply when completed, adding that the 104km, 24-inch Escravos-Warri pipeline doubling capacity to 600mm cf/d that would provide immediate access to 80mm cf/d of gas was nearing completion.
“Production has continued to grow steadily, attaining a peak production rate of 2.5 million barrels per day,” Allison-Madueke said.
“This has been underpinned by major new projects, including the USAN project which was commissioned in April with a production of 180,000 barrels per day.”
She explained that the ministry was developing the country’s gas and hydrocarbon potential in other inland basins, in addition to reserves in the Niger Delta and offshore basins.
“With the dredging of the River Niger, we will be able to move Liquefied Petroleum Gas (LPG) around the country, bringing gas to the east, west and northern parts of the country.”
She said the government was committed to stimulating economic growth through the development of the oil and gas sector.
The ministry is on course in the implementation of the Gas Master Plan that will attract over $30billion investment in gas infrastructure and the development of gas based industries.
She also said the ministry was working with all stakeholders in the sector and international oil companies to increase gas supply to the Independent Power Plants (IPPs).
On oil theft in the country, the minister said the ministry had intensified collaboration with security agencies and that a task force was underway to curb the menace.
