After Shutting Down His Bank, Dangote Closes Plans For Gas Pipeline Due to Government Policies
- The Dangote Industries Limited has disclosed that it scrapped plans to build a 1,200km gas pipeline
- Devakumar Edwin, VP of Gas and Oil at Dangote Industries, said government policies force the firm to abandon the plan
- He said that the plan was to bring gas from the sea to shore to power industries and companies
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Vice President of Oil and Gas at Dangote Industries Limited, Devkumar Edwin, has disclosed that a government policy forced Dangote Industries to scrap its plan to construct a 1,200km subsea gas pipeline.
Edwin disclosed this recently at a Space event on X, stating that the pipeline was meant to marshal two billion standard cubic feet (SCF) of gas daily from the offshore fields to the Nigerian shore.
Source: Getty Images
FG wanted to claim the gas pipeline
He disclosed that industries would have used the gas to stimulate economic growth rather than export raw materials.
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According to reports, Edwin stated that Nigeria has a lot of trapped gas in the sea, and there is no way to bring it ashore, stating that the Dangote conglomerate wanted to invest in a network of 1,200km of subsea gas pipeline to get the gas to shore.
He said the idea was not to export as NLNG because there is no difference between exporting crude and NLNG. After all, crude is a raw material that can produce many petrochemical products.
NNPC begins lifting Dangote petrol
The development comes as the NNPC has commenced lifting petrol from the Dangote Refinery.
According to the NNPC, about 100 trucks have gathered at the facility as of Saturday, September 14, 2o24, ahead of loading on Sunday, September 15, 2024.
Legit.ng reported earlier that The Dangote Refinery has set a timeline to release petrol into the Nigerian market after several postponements due to crude supply challenges.
The development follows a series of meetings with the Nigerian government after the government mandated the country’s industry regulators to begin the sale of crude to local refineries in naira.
Dangote may sell petrol above the pump price
However, there are indications that the Nigerian government may subsidise petrol from the refinery, as the Nigerian National Petroleum Company Limited (NNPCL) has pegged the landing cost at N1,200 per litre.
A committee set up by the Nigerian government is already intensely negotiating crude oil sales to the $19 billion refinery and others in the local currency, beginning October 1, 2024.
However, sources have disclosed that the Nigerian government is contemplating subsidy on petrol from the refinery, although it is still being determined how much PMS from the facility will cost.
Oil marketers stated that the cost of Dangote petrol would be more than the current prices of the commodity, and they said it would be challenging for dealers to buy the product from the facility if the Nigerian government did not intervene.
Marketers petition Tinubu over Dangote’s plan to crash fuel prices
Legit.ng earlier reported the vice president of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has disclosed that the petroleum importers reportedly petitioned President Bola Tinubu over the crash of the price of diesel and aviation fuel by Dangote Refinery.
Edwin said that marketers are boycotting the diesel and aviation fuel from the refinery. They had petitioned the refinery to the president over its low-priced diesel, saying it was counterproductive to their businesses.
According to the Dangote Industries chief, the marketers took the step after the refinery crashed diesel prices.
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Source: Legit.ng
