WorldStage Newsonline– Mr Austin Avuru, the Managing Director of Seplat Petroleum Development Company Ltd. and Mr Ademola Adeyemi-Bero, the Managing Director, First Exploration and Petroleum Development Company have called on the Federal Government of Nigeria to make the ongoing gas infrastructure projects in the country a private sector-driven for enhanced strategic investment.
Speaking on Wednesday in Lagos at a forum tagged: “How African Oil can Better Compete in Today’s Challenging Markets’’ organised by the West Africa International Petroleum Exhibition and Conference (WAIPEC), they advised Federal Government to make strategic gas infrastructure like the Escravos-Lagos Gas Pipeline, proposed Ajaokuta, Kaduna and Kano Gas Pipeline and the East-west Gas Pipeline under construction a private sector-driven.
Specifically, Avuru said that if the gas pipelines and power infrastructure, currently being put place, were to be viable, the private sector must be allowed to take charge of their operations.
He said that government should not allow the projects to go the ways of infrastructure like the refineries, Ajaokuta Steel project, Nigerian Railway Corporation and Nigerian Airways went.
He said that the Nigeria Gas Company manages the gas pipelines was worrisome as it may not efficiently manage the infrastructure.
“The running of gas pipelines is more technical and complex,” he said.
“It is true that government is making efforts to double the gas intake of Escravos-Lagos Gas Pipeline from one billion standard cubic feet of gas per day to two billion.
“The Ajaokuta to Kaduna and Kano (AKK) proposed gas pipeline is not going to be a stand-alone pipeline as it going to feed on another pipeline.
“So, if anybody is investing in AKK pipeline, such person must ask, where will the pipeline feed come from?
“The investors must look at it within that context,’’
On his part, Adeyemi-Bero, said that the Ajaokuta-Kaduna-Kano Gas Pipeline would not be viable if the power sector remains the only reason for the project.
According to him, private sector participation was key for if investment needed for the project to take off must come.
He said, “Power sector alone cannot make the project viable.”
