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$20b gas industrial park underway in Niger Delta – Osinbajo

Apart from chances of increased royalties to oil rich Niger Delta host communities, emerging peace in the region stemming from the peace efforts of the federal government is about to grow positive multiplier effect as the apex government has approved the development of a $20bn gas industrial park in Delta State by consortium of international investors.

Insights to the new deal were given by the Acting President, Prof. Yemi Osinbajo, who told some international developers and investors of the project in a meeting at the Presidential Villa.

Coming as ‘Gas Revolution Industrial Park, Ogidigben’, and designed to be driven as a regional hub for all gas-based industries, the public private partnership project will cover 2,700 hectares.

It will also have with fertilizer, methanol, petrochemicals and aluminum plants located in the park already designated as a Tax Free Zone by the Federal Government.

Osinbajo stated that the Buhari administration “is committed to the development of the Niger Delta, and the importance of this project is underlined by the presidential attention it is attracting”.

While declaring the presidential support in the project, the Acting President said “We already have a Steering Committee in place, chaired by Minister of State for Petroleum Resources”.

“That shows the level of our commitment. We are unwavering. We take the project very seriously and glad to see you are committed and ready to make several other commitments.

“This is a process that we intend to see happen.”

Business Hilights recalls that even before he went on vacation, President Muhammadu Buhari had mandated Osinbajo to visit oil-producing communities to demonstrate the resolve of the administration to the pursuit of a new vision for the Niger Delta.

The building of an industrial gas hub in Ogidigben, Delta State was revived during the visit to the states.

Details from the Ministry of Investment, Trade and Industry showed that the investing consortium comprised Fortune 500 companies such as the GSEC of South Korea, the China Development Bank, Power China and several other global operators from Asia and the United Arab Emirates.

According to the plan presented by the consortium, about $20 billion would be invested to develop the Gas Revolution Industrial Park to generate 250,000 direct and indirect jobs.

The park, originally conceived by the Nigerian National Petroleum Corporation, is located about 60km from Warri, and about 1km from the operational base of Chevron Nigeria Limited.

It will be connected to over 18 trillion Cubic Feet of gas reserves in fields such as Odidi, Okan and Forcados, located within a 50km radius.

The park will also be connected to Nigeria’s most dominant gas pipeline network, ELPS to enable supply of gas to and from the park.

In his speech at the occasion, Dr. Ibe Kachikwu, the Minister of State, Petroleum Resources, expressed confidence that the GRIP would bring the much needed succour to the people of the Niger Delta.

Kachikwu also said that the oil-producing states would benefit from the project.

Earlier, the leader of the group of investors and developers, Sheikh Mohamed Bayorh, stated the commitment of the consortium, adding that the project remained important to solving the Niger Delta crisis.

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