SEDC Targets Energy Security as $1.5bn South-East Gas Pipeline Project Begins

By Kenechukwu Ofomah | IchieTimes

ENUGU: The South-East Development Commission (SEDC), through its investment arm, the South-East Investment Company (SEIC), has launched a major gas distribution pipeline project expected to transform the region’s industrial landscape and address its longstanding energy challenges.

The project, launched in Enugu on Tuesday, is estimated at between $1.5 billion and $2 billion, with a target of completing the initial phase within eight months of the release of the mobilisation fee.

The initiative is being undertaken in collaboration with Gas Sync Ltd and Nigerian Gas Marketing Limited (NGML) and will commence with a 178-kilometre gas distribution network, with plans to expand it into a 400-to-500-kilometre high-pressure pipeline loop connecting the five South-East states.

The pipeline will originate from the ANOH Gas Processing Plant in Assa/Ohaji, Ohaji/Egbema Local Government Area of Imo State, and extend to major industrial and commercial centres across Abia, Anambra, Ebonyi, Enugu and Imo states.

The project, backed by a $100 million investment agreement, is expected to provide reliable and affordable gas to manufacturers, reduce energy costs, stimulate industrial production, create jobs and attract fresh investments into the region.

The launch ceremony, held at the Hotel Presidential, Enugu, was attended by Enugu State Governor, Dr Peter Mbah; Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Kalu, who represented President Bola Ahmed Tinubu; SEDC Managing Director, Mr Mark Okoye; APC National Vice Chairman, South-East, Dr Ijeomah Arodiogbu, as well as representatives of the private sector, industry, investment institutions and other stakeholders.

Speaking at the event, Okoye said the project was the outcome of extensive consultations with South-East governments, the private sector, manufacturers and other stakeholders on the infrastructure required to unlock the region’s economic potential.

He said gas infrastructure, rail infrastructure and river-port infrastructure, alongside federal highways and other connectivity projects, consistently emerged as the region’s major priorities during the consultations.

According to him, the engagement that culminated in the project began about 13 months ago when NGML approached the Commission seeking its endorsement.

“SEDC decided to go beyond endorsement by ensuring that the South-East, through its governments and private sector, would have an opportunity to participate in the ownership and growth of the project.

“The Commission undertook extensive financial, legal, commercial, political and regulatory due diligence before deciding to invest in the project.

“We consequently decided to make an initial investment of $3 million. That investment has already been made. The funds were paid about a week ago, following the approval of the Chairman, the Board and the management team,” he said.

The SEDC boss further disclosed that the Commission had negotiated an additional $27 million equity stake for participation by the South-East.

He said the equity would first be offered to the South-East governments under a right of first refusal, after which the private sector and other stakeholders in the region would have the opportunity to participate.

Okoye stressed that the majority of the funding for the project had already been raised by the private sector and NGML, explaining that SEDC’s intervention was designed to give the region a strategic stake in the project.

The SEDC managing director said the gas project was not an isolated intervention but an essential component of the Commission’s broader South-East Industrialisation Programme.

He recalled that about six or seven months ago, during the launch of the South-East Vision 2050 Development Plan and stakeholder forum hosted by Governor Mbah, the Commission received inputs from about 8,000 people on the development priorities of the region.

He said gas featured prominently in virtually every discussion.

“Energy security is fundamental to moving the South-East forward. Without reliable and affordable energy, it will be difficult to achieve the level of industrialisation and economic growth that the region deserves,” Okoye said.

He disclosed that the establishment of the South-East Investment Company was approved by President Tinubu to provide a vehicle for mobilising private capital for infrastructure and investment projects across the region.

According to him, the Commission’s immediate priority is to address the gas infrastructure deficit, after which infrastructure such as access roads, water and captive power would be extended to industrial parks and special economic zones.

He said the objective was to create clusters of industrial activity capable of accelerating manufacturing and economic development across the five states.

“Our role is to complement the fantastic work being done by the governments of the South-East. We are approaching this from the standpoint of asking: How can we inject resources, unlock economic growth and unlock economic activity across the region?” he said.

The SEDC MD noted that the project was designed not only to address the immediate gas shortage but also to create the foundation for a broader industrial ecosystem across the five states.

He also expressed optimism that improved gas infrastructure, combined with better roads, rail connectivity, river ports and industrial infrastructure, would attract investors and unlock new economic corridors across the South-East.

Okoye said the long-term vision was to create an environment where investment and industrial activities could expand from major centres such as Nnewi to other parts of the region, creating a network of interconnected economic opportunities.

Also speaking, APC National Vice Chairman, South-East, Dr Ijeomah Arodiogbu, described the project as a demonstration of the Federal Government’s commitment to the economic transformation of the region.

Arodiogbu said reliable and affordable gas would strengthen manufacturing and commercial activities in major industrial centres including Aba, Nnewi, Onitsha and Enugu.

He described the pipeline as a “game-changer,” saying it would enhance the competitiveness of businesses, stimulate job creation and integrate the South-East more firmly into Nigeria’s industrial economy.

Arodiogbu urged political leaders, business operators and other stakeholders to support the timely implementation of the project, stressing that collaboration would be critical to achieving its objectives.

Mbah commends Tinubu

In his remarks, Governor Peter Mbah commended President Tinubu for establishing the SEDC and supporting the gas pipeline initiative.

He said the project was a major step towards addressing the energy challenges that have constrained industrial development in the South-East, adding that improved access to energy would provide a stronger foundation for businesses and industries to expand, create jobs and contribute more significantly to the regional and national economy.

The launch brought together political leaders, industry representatives, traditional rulers, development partners, investment institutions and other stakeholders who described the initiative as a significant infrastructure investment for the region.