Jonathan commissions $1.5b gas processing facility •Gas scarcity: Dangote Cement opts for coal President Goodluck Jonathan has expressed hope that Nigeria would soon become Africa’s petroleum hub judging by the level of gas utilisation and private sector involvement in the oil and gas sector. Nigeria has far more proven reserves of gas than oil, which when maximally utilized, the President said, would boost the economy, create jobs and greatly reduce cases of gas flaring to its barest minimum by 2020. Jonathan said this on Thursday during a one-day working visit to Uyo, Akwa Ibom State capital, where he commissioned a $1.5 billion gas processing facility undertaken by Seven Energy and Frontier Oil, in partnership with the Akwa Ibom State Government. He also conducted the groundbreaking ceremony of an methanol industry, besides inspecting other projects. The President stressed the need to establish more petrochemical industries nationwide, to check cases of crude oil export, thereby creating wealth and helping in transforming Nigeria’s economic landscape and boosting foreign exchange earnings. “We cannot continue to export crude oil, create wealth and boost economy of other countries, we need to add value to our gas through petrochemical processes which will lead to production of other commodities such as textile, fertilizers, cosmetics, tires etc. this is one of the ways we can create wealth and jobs for our teaming youths,” Jonathan added. According to him, Nigeria’s economic policy no longer permits government’s direct involvement in investment, commending private investors for taking investment risks, just as he expressed hope that they would be able to achieve a robust economy for the country. The President thanked the government and the people of Akwa Ibom State for creating an enabling environment for investors to thrive, and the communities for hosting two major petroleum projects. He urged them to take advantage of such development in their areas for employment and poverty reduction. Also speaking, Governor Godswill Akpabio said the strides in the state were in conformity with the President’s reformation agenda of the power and petroleum sectors of the nation’s economy as well as promotion of the local content law. Akpabio described the project as laudable, as it will positively affect the future of the state and transform the nation’s economy. He commended, Jim Ovia for his decision to cite the project in the riverine part of the state, pointing out that the investor did so at his volition. Also addressing the town hall meeting Minister of Petroleum, Dieziani Alison-Madueke, commended Nigerian investors for delving into a very critical aspect of the petroleum sector, with the gas processing and petrochemical methanol plants and expressed hope that such developments will not only create employment but will also fit into the master plan of commercialisation of the gas sector. “This will position the oil and gas sector to touch the real economic need of Nigeria. “The gas processing plant will in addition to serving the Ibom Power Plant, service the Calabar IPP. These projects represent the President’s ardent support for petroleum development. “This is an epoch making history in Nigeria and underscores the President’s support for local contents,” the minister said. Meanwhile, manufacturing companies and owners of power assets (electricity generation and generation companies) recently privatised by the Federal Government, have continued to groan under the weight of inadequate gas supply to power their plants. The situation was made even worse for manufacturers by the dearth of Low Pour Fuel Oil (LPFO), a ready alternative the manufacturers usually fall back on to run their plants. For the first time in the nation’s history, LPFO, or black oil, which came in large supply from the Warri, Port Harcourt and Kaduna refineries, is now being imported, because production activities in the various facilities are very low.
Posted on: Fri, 15 Aug 2014 07:26:49 +0000
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