Restrictive govt policies made us abandoned 1,200km subsea gas pipeline—Dangote

Dangote Industries Limited has abandoned its plans to build a 1,200km subsea gas pipeline aimed at bringing offshore gas to Nigeria’s shores.

The company’s Vice President, Mr. Devakumar Edwin, revealed the decision during a discussion hosted by Nairametrics on the social media platform X.

According to Edwin, the project was initially intended to process gas for local businesses and industries rather than export it as raw material. However, the company faced significant regulatory hurdles.

At the time, Nigerian government policies prohibited a single company from operating across the upstream, midstream, and downstream sectors of the oil and gas industry. Additionally, another policy mandated that all gas pipelines, regardless of who built them, must be handed over to the state-owned Nigeria Gas Company.

Edwin explained that the project had progressed to the stage where a year-long study was conducted to map out the pipeline route using two ships. The pipeline was designed to transport 2 billion standard cubic feet of gas. However, the restrictive policies led to the project’s abandonment.

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Despite this setback, Dangote Industries has made significant investments in other sectors, notably in upstream oil production, with over $23 billion poured into its refinery and fertilizer plant.

Nigeria, which holds Africa’s largest natural gas reserves, exceeding 200 trillion cubic feet, continues to face challenges in harnessing this resource due to inadequate infrastructure and capital limitations.

The Nigerian National Petroleum Company Limited (NNPCL) has announced ambitious plans to triple the country’s natural gas reserves to 600 trillion cubic feet as part of its strategy to achieve net-zero emissions by 2060.

In line with this goal, NNPCL has secured deals with international partners, including a South Korean consortium led by Daewoo E&C and a $550 million investment with French energy giant TotalEnergies to develop gas facilities in Rivers State.

These efforts are crucial components of Nigeria’s Energy Transition Plan, which focuses on expanding the use of natural gas as a low-carbon energy source.