Oil & Gas
Infrastructure shortfall stalls domestic gas production targets
Nigeria projected target for gas production domestically will continue to suffer set back if the issues around shortfall in infrastructure is not addressed industry experts in the oil and gas sector have warned.
Energy experts observed that apart from the challenge of lack of infrastructure in gas sector, flaring will continue to impede the nation’s prospect in benefiting optimally from export of gas until government who is part owners of all the joint ventures commits huge investments in infrastructure to checkmate this menace.
Analysts believe that achieving the desire result in local gas demand depends on implementation of a Gas Purchase agreement per contract as the domestic Gas market evolves. But absence of an enabling business environment in the gas sector is also not helping matters and can contribute to forestalling the projection.
Ken Abazie, Chairman of the Petroleum Downstream Group of the Lagos Chamber of Commerce and Industry while assessing the current challenges in the oil and gas sector of the economy maintains that as a matter of urgency must declare emergency on the refining of petroleum products in Nigeria.
He said Government should go out of its way to get investors to invest in refinery in the country. Nigeria should be able to refine all its 45 million litres daily requirement and even export.
“Government must systematically dis-engage from undue participation and rather strengthen its regulatory function of the business”. He said.
Abazie said Government should also encourage investment in the sector through a transparent import financing outlay in conjunction with Nigerian Central Bank
According to him, the impact of government’ solver interference throughout the value chain brought in a lot distortions in the business space. A in the past whereby government wants to be the one to bring in refined products, build retail outlets across the country as well as acquiring several distribution trucks is a wrong business approach.
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