Tinubu reassures investors of liberalised energy business environment

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• President inaugurates three gas facilities in Imo, Delta

Nigeria recorded significant success yesterday in its drive to reenergise the energy sector with the inauguration of three major gas infrastructure projects.

President Bola Ahmed Tinubu performed the ceremony virtually from the State House in Abuja, with an assurance to investors of a  liberalised energy business environment. The inauguration of the projects sited in Imo and Delta states coincided with a revelation that the Presidential CNG Initiative on Gas has attracted  $50m investments. 

An elated Tinubu lauded the Nigerian National Petroleum Company (NNPC) Limited for delivering the plants in Imo and Delta states  within 11 months as against the set target of two years.

The projects in Ohaji-Egbema,  Imo State, and Kwale,  Delta State are the expanded AHL Gas Processing Plant;   ANOH Gas Processing Plant, and the  23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline.

The AHL Gas Plant is being developed by AHL Limited, an incorporated Joint Venture owned by NNPC Limited and SEEPCO.

ANOH gas plant is an integrated 300MMscf/d capacity processing plant designed to process non-associated gas from the Assa North-Ohaji South field in Imo State.

The plant will produce dry gas, condensate, and Liquified Petroleum Gas (LPG). The gas from the ANOH plant will significantly increase the domestic gas supply, leading to increased power generation and accelerated industrialisation.

The ANOH-OB3 CTMS Gas Pipeline Project is being developed by ANOH Gas Processing Company, an incorporated Joint Venture owned by NNPC Limited and Seplat Energy Plc on a 50-50 basis. It is a project that involves the engineering, procurement, and construction of a 36”x23.3-kilometre  pipeline.

President Tinubu, according to a statement by his Special Adviser on Media and Publicity, Ajuri Ngelale, said his administration was stepping up its coordination of other landmark projects and initiatives for easy realisation of gas-fuelled prosperity in the country.

He added that the President noted that the projects were fully in line with the Decade of Gas Initiative and his government’s vision to grow value from the nation’s abundant gas assets.

NNPC Limited Group Chief Executive Officer (GCEO) Mele Kyari told reporters at the site of the ANOH Gas Processing Plant,   how the company successfully delivered the three critical gas projects in less than a year.

Kyari emphasised that the gas revolution would bring enormous resources into the domestic market by providing gas for power generation, industry, and chemicals.

This value chain, according to him,  will create jobs, employment, taxes, and other benefits that a typical gas-producing country should enjoy.

He said the company was already making significant progress on other LNG  and floating LNG projects to further boost Nigeria’s gas exports.

lmo State Governor  Hope Uzodimma praised   President Tinubu for considering the state as one of the suitable places to site one of the three critical gas infrastructure projects.

NNPCL Chief Communications Officer Olufemi Soneye, in a separate statement, said aside from the Presidential Compressed Natural Gas (CNG) Initiative, significant progress has also been recorded in incentivising gas development through Presidential Executive Orders.

The initiative  is aimed at moving Nigerians away from petrol and diesel as vehicular combustion fuel.

*Presidential initiative on gas attracts $50m investments

The Presidential Initiative on Compressed Natural Gas (PI-CNG) has in the last five months, attracted $50 million in investment from investors committed to a cleaner and more reliable energy sector.

Programme Director/Chief Executive, Presidential CNG Initiative, Michael Oluwagbemi, broke the news during the PI-CNG Southwest stakeholders’ forum in Lagos.

The event attracted stakeholders from Lagos, Oyo, and  Ogun states, organised public transportation companies, BRT co-operatives, LAMATA, National Association of Road Transport Employers Association of Nigeria, tricycle operators, and key leaders in the business community.

Oluwagbemi said the PI-CNG was created to cushion the effects of fuel subsidy removal on Nigerians and open new investment windows for domestic and global investors in the gas sector.

He added that the government has continued to mobilise private sector for compressed natural gas use and investments.

According to him, the series of investment inflows to the sector showed the level of commitment by the present administration to boosting cleaner energy and promoting a more efficient energy sector.

Oluwagbemi said: “I am pleased to announce to you that since that December till date over $50 million have been mobilised directly by the sector, much more than any amount of money that has been mobilised in the sector in the last eight years combined, in just five months.

‘’Thousands of Nigerian companies are investing in the sector because they see that the present administration is serious about moving the country forward and leveraging the gas resources that God has given us.”

Labour and Employment Minister  Nkeiruka Onyejeocha said the initiative represents a beacon of hope, not just for Nigeria’s transport sector but for the future of the nation.

“The Presidential CNG Initiative stands as a testament to this vision, as it not only seeks to revolutionise Nigeria’s transport sector with cleaner energy but also commits to up-skilling and training 25,000 auto technicians in the process,” she said.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, said Nigeria is currently at the stage of revolution in the transport sector.

Assuring that the  PI-CNG would support the sector’s quest for excellence and growth, Onanuga  said more acceptance and promotion of the CNG initiative would continue to support economic growth.

Head Commercial at PI-CNG, Tosin Coker, said 590 CNG-compliant buses purchased by the Ministry of Finance would  be delivered   this month

He said electric vehicles and 5,500  tricycles will also be provided to alleviate Nigeria’s transport challenges. 

Commissioner for Transportation, Lagos State, Oluwaseun Osinyemi, said the initiative would encourage more investments in CNG, adding that the state has already invested in electric vehicles, with some BRT buses meant to become CNG-enabled.

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