One of the benefits of domestic gas supply is that it is helping to build industrial clusters across Nigeria.
In a statement yesterday, Technical Adviser, Gas Business and Policy Implementation to the Minister of State for Petroleum Resources, Justice Derefaka, said the development is also boosting productivity and economic growth.
He noted that producers typically congregate around areas with a competitive advantage – cheap labour, reliable power or the presence of raw materials.
He said: “This concentration creates industrial clusters, a network of interconnected producers in one location, driving innovation, employment and productivity.
“Key players in Nigeria’s gas sector are conscious of the opportunities these clusters bring.
“In response, they are actively investing in critical gas infrastructure to supply gas for power generation in these clusters.
“The presence of these clusters outside Nigeria’s crowded commercial capital, Lagos, is an added advantage providing an opportunity for liberalised economic growth.”
For instance, he said that Shell Nigeria Gas (SNG) is actively leveraging this opportunity with gas distribution networks to supply industrial clusters in Aba, Abia and Port Harcourt, Rivers states, and future plans to build clusters in Bayelsa and Oyo states.
The presence of these clusters outside Nigeria’s crowded commercial capital, Lagos, is an added advantage providing an opportunity for liberalised economic growth.
He also identified other companies committed to the development of self-sustaining industrial clusters.
Derefaka said: “In March 2021, it announced the completion of an 18km gas pipeline system in Ogun, South West Nigeria, to supply gas to Rite Foods Limited’s large-scale factory in Ososa, Ogun.
“QSL Gas and Power Ltd. is also working closely with the Nigerian Gas Marketing Company Ltd. to distribute gas for a range of industrial and power generation applications in Edo and Ondo States
“The Ajaokuta-Kaduna-Kano (AKK) 614km pipeline project initiated by the Federal Government is another opportunity for interested companies to build infrastructure connecting clusters in the Northern region to gas supply.
“The industrial clusters playbook works for everyone. Gas is supplied in commercial quantities to power industries, fostering remarkable progress for Nigeria’s industrialisation drive.”