Proposed gas pipeline will cut costs, boost South-East economy — Tinubu

By Chinedu Adonu

ENUGU – President Bola Tinubu has said the proposed South-East Gas Distribution Pipeline Project will reduce energy costs, boost industrialisation and create jobs across the five states of the region.

Tinubu, represented by Deputy Speaker of the House of Representatives, Benjamin Kalu, spoke yesterday at the South-East Gas Infrastructure Investment and Project Development Ceremony in Enugu.

The proposed $100 million project, being developed by Gas Sync Limited in partnership with NNPC Gas Marketing Limited and other stakeholders, seeks to connect gas resources to industrial and commercial centres in Abia, Anambra, Ebonyi, Enugu and Imo states.

The President said reliable and affordable energy was critical to unlocking the region’s industrial potential, lamenting that manufacturers had continued to spend heavily on alternative power.

“There is a sound familiar to every manufacturer in Aba, Nnewi, Onitsha, Enugu and across the South-East. It is the sound of a generator,” he said.

“Our manufacturers should not have to spend more on generating electricity than on expanding production.”

Tinubu said the project would strengthen manufacturing, encourage agro-processing and attract new investments, adding that the benefits of the region’s gas resources should be measured by the industries they power and the jobs they create.

“The true value of our gas is in the factories it powers, the jobs it creates and the prosperity it brings to our people,” he said.

He commended the South-East Development Commission (SEDC) for committing $3 million to the initiative, stressing that the project required cooperation between federal and state governments, private investors and financial institutions.

However, he cautioned that the ceremony was only an investment and project-development milestone, with financing, regulatory approvals and construction still ahead.

“We are not investing in pipelines for their own sake. We are investing in the industries, businesses and jobs those pipelines will make possible,” Tinubu said.

Earlier, SEDC Managing Director, Mark Okoye, disclosed that the commission had completed technical, financial and legal due diligence before making its $3 million investment.

Okoye said the commission was targeting up to $30 million in aggregate regional investment participation, including its contribution, with additional funds expected from state governments and private investors.

“This is not merely an expression of interest or a promise of future investment. The commission has made an actual financial investment towards advancing this regional infrastructure initiative,” he said.

He explained that the project would initially draw on gas resources associated with the Assa North–Ohaji South development in Imo State.

Okoye said the initiative formed part of SEDC’s broader industrialisation programme aimed at addressing infrastructure constraints facing manufacturers and businesses across the region.

“Our philosophy is simple: Plan. Prepare. Partner,” he said, adding that the commission would work with state governments and private-sector operators to mobilise investment for regional development.

Also speaking, SEDC Chairman, Dr Emeka Wogu, said affordable and dependable energy was essential for improving productivity, attracting investments and creating employment.

He urged investors and energy companies to support the project, stressing that its success should be measured by its economic impact.

“The ultimate purpose of infrastructure development is to improve lives,” Wogu said.

He called for transparency, environmental responsibility, community engagement and strict adherence to safety standards in the development and operation of the proposed pipeline.

The initiative however aligns with Enugu State Governor Peter Mbah’s call for a high-pressure gas pipeline linking major cities across the South-East to accelerate industrial development.

Mbah had argued that reliable access to piped gas would ease energy constraints, lower production costs and improve the competitiveness of industries in the region.

Earlier, South-East governors pledged their support for the project, describing energy access as a major challenge facing businesses in the region.

They assured that the states would provide the necessary support to ensure the pipeline became a reality.

“We will do everything required of us to make sure that the project succeeds. We are happy that the project is here in the South-East because the major problem of the region is energy,” the representative said.

“With this project, every company will be able to produce at a lower cost of energy, while more people will have opportunities to work and contribute to the economy,” the representative added.

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