FG to award contracts for gas pipelines says Alison-Madueke

The Federal Government is set to award contracts for gas pipelines that will connect the East and the West says Petroleum Minister,Deziani Alison-Madueke.

This is part of the strategic planning towards ensuring a steady gas supply for power generation and as a step to implementing the gas master-plan.

Alison-Madueke who disclosed this in Lagos, stated this in Lagos said gas price would be revised from $2. to $3 for a million cubit feet by 2013.

She highlighted ongoing efforts of the government to establishing commercial and competitive gas pricing in the country, which currently is expected to be $2 for a million British thermal unit (mmbtu) by 2013, as well as Gas Supply, Purchase Agreement (GSPA) for Egbin Power station.

Mrs Alison-Madueke noted that government's efforts are geared at establishing investment-friendly environment and to create robust domestic gas market for sustainable power generation and supply.

She said: "Beyond the commercial reform, we have commenced additional interventions in implementing the Gas Master-Plan infrastructure blueprint. Contracts for critical pipelines such as the Ob/Ob Oben will be awarded shortly, enabling linkage between the East and West. Other infrastructure initiatives include the central processing facilities which will ensure high gas specification within the pipeline network.

"With the above interventions, there has been a significant shift in supplier attitude, which is expected to translate into a sustained growth in gas supply going forward, stimulate the growth of the distribution networks thereby facilitating connection of more manufacturers to the more affordable gas network.

She noted that President Goodluck Jonathan had in the last few weeks focused on repositioning the gas sector to create sustainable investment environment that would incorporate incentives that would boost gas supply development for the domestic market and power.