Editorial

The Gassy Master Plan

NIGERIANS are used to rolling plans, master plans, road maps and such assumed indicators of long term planning. What they have not seen in the past 50 years of promotion of these ideas is their execution and the promised improvement of lives based on their results.

President Goodluck  Jonathan last month launched  a gas revolution with much fanfare and plans to generate 1,000,000 direct and indirect jobs for people involved in engineering, logistics, construction, tourism, and agriculture by 2014.

Fears already abound that the plan could be a political gimmick and an addition to the catalogue of similar plans that ended with their launching.

“Today’s event marks the beginning of a fulfilling journey for Nigeria to move into the league of nations which have successfully leveraged on the advantage derivable from their abundant natural gas to positively impact on the lives of their citizens.

The focus is to catalyse the industrialisation of the country by seeding in a few investments that have the highest potential of far-reaching multiplier effect on the economy. This agenda is expected to end gas flaring. By 2014, we expect to have placed Nigeria on the pedestal as a regional hub for gas based industry,” Jonathan said.

Two oil companies will build a $3 billion central gas processing facility in Obiaruku, Delta State by 2012.  On paper, the gas revolution will turn Nigeria into the gas industrial complex of West Africa with provision for fertiliser and petrochemical complex. Nigeria could be more of a gas producer than a petroleum producer.

Some experts consider the plan ambitious. It is too short termed in the expectation of results. The President projected $25 billion in net foreign direct investment.

Aspects of the plan that are cloudy add to the concerns.  Announcement of a Memorandum of Understanding with a Saudi company to construct a petrochemical plant in Koko Free Trade Zone, Warri, are without details except for the projected capacity of about 1.3 million tonnes per annum.

Domestic gas utilisation could benefit from another contract with an Indian firm,  working with a United States oil major, to build five fertiliser blending plants across the six geo-political zones. The factories, according to projections, would utilise a substantial volume of the country’s huge gas resources. No mention was made of the infrastructure required to support these industries across Nigeria.

Nigeria  in 2009 short listed 15 firms including Russia’s Gazprom, E.ON Rhugas of Germany and Royal Dutch Shell in a project hailed to build three major gas-processing facilities in the country. What happened to that plan?

A central gas processing facility, experts say, could save flared gas with the economic benefits the saved gas would provide, including a cleaner environment. The major concerns remain that these projects are too ambitious to be completed on the short term and the non-involvement of most of the oil companies that flare the gas.

Master plans are wonderful. The artistic depictions are even more stupefying. What remains – and is most important – is an execution programme that will ensure the master plan becomes reality. The execution programme of the gas revolution is gassy.

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