Industry-Nigeria - President Goodluck Jonathan is set to launch, on Thursday, a Gas Revolution agenda, which is specifically designed to expand the nation's gas supply that will lead to re-industrialisation of the country as well as the development of its agricultural resources. Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, who announced this at a press parley yesterday, in Abuja, said in pursuit of the vision to transform the industrial footprint of Nigeria, President Jonathan would launch a combination of industrial investment which comprises two world-scale petrochemical plants, two fertilizer plants, five fertilizer blending plants, a methanol plant and a Liquified Petroleum Gas distribution plants.

She said the Gas Revolution which is aimed at achieving significant improvement in power availability for all and repositioning of Nigeria as the undisputed regional hub for gas-based industries would engender an unprecedented growth in Nigeria's gas supply from the current one billion cubic feet per day to over 10 billion cubic feet per day by 2020.

$10bn FDI

She said: "The combination of the planned investment will in one swoop result in the most significant in-flow of Foreign Direct Investment of over $10 billion between 2012 and 2014 when all the plants will be operational."

According to Alison-Madueke, the petro-chemical value chain is known as a major creator of employment, adding: "Based on our planned investment in the 1.3 million tonne per annum capacity petrochemical plant, it is estimated that the 200,000 direct and indirect jobs will be created.

"The delivery of the fertilizer plants agenda is strategically coordinated to enable strong linkage with the agricultural sector creating an agricultural revolution, enabling millions of Nigerians access to affordable food.

"More importantly, however, is the explosion in employment creation that will arise from the boost in agricultural productivity and the related agro and food processing industries that will emerge. The creation of 500,000 jobs is estimated from this agriculture-related agenda as well as an attendant increase in the nation's GDP."

The Minister stated that to this extent, the government would embark on the construction of a critical gas pipeline estimated to cost about $2 billion, adding that focus on its rapid development is ongoing.

She explained that the President had "a strong vision and passion to re-industrialise Nigeria using the vast natural resources that the country is so richly endowed with. Mr. President is determined to ensure that the efficient and effective utilisation of our natural gas resources will impact positively on the lives of every Nigerian."

Cardinal principles

According to her, the delivery of the vision is anchored on some cardinal principles, including a significantly improved power availability, repositioning of the country as the undisputed regional hub for gas-based industries such as fertiliser, petro-chemicals and methanol, as well as a geographically spread industrialization, creating wealth rapidly across the nation.

She added that the Federal Government's "gas agenda, both domestic and export, clearly paves the way for Nigeria to be in that category, with all the attendant benefits.

"That agenda will necessitate an unprecedented growth in our gas supply, from the current one billion cubic feet per day to over 10 billion cubic feet per day by 2020. Realising this growth calls for a radical review of how the nationwide gas potential is harnessed."

She further noted that in order to grow the gas industry at the envisioned pace, "there must be flexibility in our gas resource development and supply base. This calls for the strategic development of various inland basins, in addition to the Niger Delta and offshore basins.

"Over the next five years, we will be prioritizing about $1 billion for further seismic data gathering, aeromagnetic surveys, exploration and appraisal drilling. By enhancing the prospectivity of these basins, we hope to build a significant supply bases across the various geopolitical zones that complement the existing gas supply centres in the Niger Delta," she added

Based on the above, she stated, the current pipeline infrastructure which is anchored around the Calabar-Ajaokuta-Kano line would be further complimented by a network of additional spur lines originating from these new supply centres in the inland basin enhancing growth of local supply and consumption.

"This will greatly accelerate industrialization across the country," Alison-Madueke added.

Hector Igbikiowubo, Yemie Adeoye & Oscarline Onwuemenyi

Vanguard/21/03/2011