SkyscraperCity Forum banner
1 - 1 of 1 Posts

17,177 Posts
Discussion Starter · #1 ·
There are indications that the Federal Government has began negotiations on feedstock (NGL) pricing with two world class potential investors who are planning to invest in the building of two petrochemical and plastics conversion complex (estimated at 450KTPA capacity polypropylene/polyethylene complex) in the country.

THISDAY gathered that the on-going negotiations are direct fallout of some of the progress recorded by the Minister of Petroleum, Diezani Allison-Madueke at the just concluded OPEC meeting in Vienna, Austria.

Although the identities of the two investments companies are being withheld so as not to jeopardize on-going negotiations, the two refineries which are slated to be sited in Koko, Delta State and Lagos, and expected to rank among the best globally in terms of world-class standard and will effectively boost the Federal Government's initiative of generating thousands of jobs and support government's quest for self sufficiency in food production.

It was gathered that investor's confidence was bolstered by the recent oil and gas sector reforms embarked upon by government which are being viewed as starting to yield promising results.

The minister, who was making her debut as the first female Minister of Petroleum Resources to head a member state delegation reportedly affirmed to the various stakeholders in the oil and gas sector that Nigeria was indeed ready to take her rightful place in the comity of nations; stressing that the time had come to embrace reforms to enhance the fortunes of member nations.

At the meeting, Alison-Madueke, according to a source familiar with proceedings, said she used the platform and opportunity offered by the conference to highlight Nigeria's success story from the implementation of some far reaching reforms since her assumption of office about four months ago.

Delivering a keynote address titled: "Third Quarter Highlights of the Administration's Achievement in Oil and Gas Sector" at the meeting, she said the administration has successfully concluded the implementation of the most aggressive reforms of the domestic gas pricing.

In the address, the Minister listed some of the reform initiative to include "gas to power pricing which has been revised to more sustainable commercial levels that now incentivise sustained gas supply development and growth as well as pricing from gas suppliers to Wholesale and Local Distribution Companies (LDC) manufacturing industries that has also been revised."

She pointed out that the aggressive reform in the sector has also "led to the creation of a framework for a negotiated pricing arrangement between Wholesale LDC and the inclusion of end user manufacturing industries which is now at implementation level."

On the pricing regime, she noted that "while all price changes are being implemented immediately, the new pricing regime has incentivise supply growth from Upstream gas suppliers, ensure predictability, affordability and availability of gas for the manufacturing sector, thereby creating a platform for sustained economic growth in the country."

The Minister said the new direction being charted in the sector, has resulted further in the " progressive negotiation and implementation of World Class Bankable Gas Supply Agreements (GSPA) for Nigerian Market.This is evidently clear in the Progressed (GSPA) negotiations with Power Holding Company of Nigeria; commencement of GSPA negotiations with the Niger Delta Power Holding Company of Nigeria; and the gradually entrenched robust process for gas contracting in the Nigerian domestic market that will assure bankability."

She explained that "within the period under review, the reform is galvanizing a major Gas Based Industrialization Agenda for Nigeria, which has led to a significant progress with investor companies now set to build the two world scale fertilizer plants in the country"; adding that, tangibly, "the Gas Aggregation Company of Nigeria has commenced due diligence assessment of companies as a prelude to the negotiation of a gas supply agreement."

According to her, the company has "has also commenced negotiation on feedstock (NGL) pricing with two world class potential investors that plan to build two Petrochemical (about 450KTPA capacity Polypropylene/Polyethylene complex) and Plastics conversion complex in Nigeria."

The Minister stressed that the direction of government is hinged on the belief "that the successful outcome of these efforts would culminate into the beginning of technical and related investment assessment efforts; and thus possibly open up Nigeria for a full-scale industrialization".
1 - 1 of 1 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.