Driving force behind gas pipeline project outlined

Accra, March 9, GNA - Huge gas reserves, production levels of about 2.5 billion standard cubic feet, which is in excess of local demand are some of the major factors driving the West African Gas Pipeline Project.

Mr Jackson Gaius Obaseki, Managing Director, Nigerian National Petroleum Corporation, who said this in Accra on Thursday, said confirmed buyers and sellers and the setting up of the project as a private venture based on agreed principles are a positive trend for the sub-region.

He was speaking on "West African Gas Pipeline - Providing Security for West Africa," at the fourth Oil and Gas Africa Conference and Exhibition and the fifth African Oil and Gas Trade and Finance Conference.

The terrible experiences of the past had negative impact on the economies of the countries in the sub-region but the availability of Nigerian gas through the Project would reverse this trend as gas gets cheaper, more reliable and a cleaner substitute.

Mr Obaseki said with respect to the energy mix, countries in the zone rely on imported crude oil for their refineries as well as petroleum products for domestic consumption.

"Others rely on other forms of energy such as hydro, wood fuel. But not only does the use of wood fuel encourage desertification and erosion, other non-conventional fuels are more expensive with hydro power subject to the vagaries of the weather...."

Besides, existing turbines cannot cope with the anticipated future demand. "Consequently, gas from Nigeria is expected to fill this void and provide energy, particularly for electricity generation and industrial use."

He said it is in this direction that sub-regional cooperation becomes crucial for rationalising energy production and consumption to the advantage of the countries.

Mr Obaseki said the provision of gas from Nigeria would reduce energy import bills and their dependence on countries outside the region for their energy needs. He said the realisation of the gas pipeline project could be the beginning of sub-regional cooperation in the energy sector.

"It is the first major project in the energy sector that is being undertaken by four countries of the sub-region. It will certainly open the door for more of such projects in the future."

He called for unbroken political will on the part of the participating countries to ensure respect and understanding as they cooperate, not only on energy matters but also on economic and political issues.

Mr Obaseki said that, "substantial savings would be made through our efforts in cooperation on energy matters, changes in institutional arrangements, additional investment in infrastructure and reduce inefficiencies".