6 January 2009
Lagos — THE Federal Government has expressed Nigeria's commitment to the implementation of the Trans-Saharan Gas Pipeline (TSGP) project.
This is coming on the heels of a major industry decision by neighbouring Republic of Ghana to invest up to the tune of 775 million dollars on the construction of a natural gas (NG) plant which is to process dry gas for power generation in the country and Liquefied Petroleum Gas (LPG) for domestic consumption.
The Nigerian Ambassador to Algeria, Mr. Jeremiah Hassan who made the commitment on behalf of the Federal Government said that the multi-billion-dollar TSGP project was "not only viable but would also turn the economic fortunes around for the better." "This will open windows of opportunities to Nigeria. Many countries depend on gas to power their industries," he was quoted as saying by the official News Agency of Nigeria on Monday.
Hassan said that so far, the project had attracted some partners, including the European Union (EU) and Russia. According to him, Nigeria is working to establish a company that would see the project through, involving the construction of more than 4,000 km pipeline from Nigeria to Europe, through Niger and Algeria.
"Feasibility studies had since been carried out and the report was submitted to the government. The project costs are also to be determined," Hassan said. The envoy said that Algeria had earmarked 10 billion U.S. dollars for the project, adding that each of the participating countries would contribute 25 per cent of the project costs. Hassan said that the Russian involvement in the project became imperative since Russia, a country richly endowed with gas resources, already had a vast network of gas pipelines across Europe.
The government of Ghana has finalized arrangements to establish a Natural Gas Processing plant on-shore at Atuabo in the Western Region. The gas processing plant and the related pipeline infrastructure is estimated at 775 million dollars.
The natural gas will be processed into dry gas at the Atuabo plant, for power generation at Effuru in the Western Region. The gas will also be processed into liquefied petroleum gas for domestic consumption, propane and condensates for export.
A release signed by the press secretary to the president, Andrew Awuni, said the establishment of the plant will be a significant landmark in Ghana's industrialization drive. It said downstream processing facilities will be set up to produce ethanol, methanol and propane for export, fertilizers for domestic agricultural uses and granules.
The statement said a tract of land is being acquired for the project. The land will be developed into a petro_chemical industrial park to house the gas processing plant and the ancillary industries.
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