Oil & Gas
Deepening the Nigerian Gas MasterPlan projection in 2018
More than ever before, the importance of gas as a critical booster to the Nigerian economy when it comes to foreign exchange earner will be critical in the year 2018.
As a country, gas contributes an estimated 80 percent to government revenues as figures show that Nigeria produces an estimated 7 billion scf per day and account for an estimated 182 trillion scf of gas reserve.
The Nigerian Gas MasterPlan set up to among other things address the delivery of gas-to-power targeted at ensuring about threefold increase in generation capacity; to achieve a reasonable level of gas-based industrialisation and thereby positioning Nigeria as the undisputed regional hub for industries such as fertilizer, petrochemicals and methanol which require Natural Gas as feedstock; and of course to ensure we deepen our export gas market making it more robust and profitable.
Industry operators said that to close the 4.7Bcfd gas demand shortfall there is the need to also grow the gas industry especially at the utilisation end adding that the growth of the Nigerian Gas Sector is anchored on growing the gas-based industries.
Operators observe that the economy is currently largely dependent on thermal power plants which are fuelled by gas adding that there is the urgent need to address issues around sustainability of gas investments and gas availability.
The Nigerian economy can truly be an investors’ haven if the challenges around gas are holistically addressed. They said.
Industry operators opine that funding remains a major hinderance towards building the required infrastructure in the gas to power value chain to grow the economy.
They observed that if the issues around credible and enforceable gas contracts coupled with a price regime are not tackled, willing local investors will continue to shy away from putting their money into production of gas for local use.
According to them, gas projects will become more profitable if indigenous companies are given access, stressing that it will be easier for local companies with proven track records to attract investors to execute projects that can unlock gas for Nigeria.
To tackle the challenge, the corporation in collaboration with Federal Government has continued to engage members of various host communities to stem incidences of pipeline infractions.
It is believed that vast opportunities await Nigeria in the gas sector more so as Nigeria is more of a gas than oil nation going by the quantity of the proven gas reserves in the country.
Industry close watchers in the gas sector urge managers of the economy to urgently address the lapses in gas infrastructure, funding and debilitating effect of vandalism in the energy sector and resolve hiccups that gas shortage poses as this will encourage investment to grow the economy.
The major hindrance in the current gas framework is at the upstream end of the market. There needs to be an overhaul of the acreage system to replace some of the current upstream operators with gas companies that have the expertise, financial ability and motivation to properly develop gas capacity in Nigeria.
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