FG’s projected reforms plan big for gas, refineries

As Nigerians await the much anticipated public presentation of the petroleum industry Governance Bill, the federal government through the ministry of petroleum resources has assured that plans are on to enhance gas and implement major reforms in Nigeria’s Downstream Petroleum sector to eliminate petroleum products subsidies and liberalise the market.

It is the expectation of government that the Gas Revolution will focus on establishment of robust infrastructure, gas based industries, Liquefied Natural Gas (LPG) and Compressed Natural Gas (CNG) penetration.

On the other hand, carrying out needed reform in the downstream sector will among other thing improved transparency, efficiency, stable investment climate and a well-protected environment for investors to operate.

Gbite Adeniji, Senior Technical Adviser on Upstream and Gas to Ibe Kachikwu, only recently disclosed that Nigeria’s gas revolution agenda seeks to introduce a significant boom in the oil and gas industry saying that the ministry is working with Nigerian National Petroleum Corporation (NNPC) group and other stakeholders to ensure that the Gas Pipeline is completed on schedule.

“We are creating an enabling environment through revised policy and legal framework for commercialising gas flare. Environmental considerations is a key part of the reform and would be given utmost attention in the implementation” he said.

Dennis Ajulu, Senior Technical Adviser on Downstream and Infrastructure to Ibe Kachikwu insists that major reforms in Nigeria’s Downstream Petroleum sector would transit Nigeria from massive importation to net exportation of petroleum products and value added petrochemicals.

He opines that reforms will enhance capacity utilisation of our local refineries to guarantee effective product supply and distribution.

Ajulu opine that Energy is the hub of every economy saying that meeting fuel demands by local production is key adding that Nigeria aspiration is geared toward targeting net energy exports which can yield revenue to drive other sectors of the economy

According to him, “Oil and Gas policy reforms will revive the Refining Sector of the Nigerian Oil and gas industry and incentivise investments which will in turn drive productivity.

“The product price modulation encouraged competition and as framework deals with production, processing and marketing as sales would be encouraged which in turn increased interest for players to go into production and processing, intermediate industry activity streams will deal with regulation, storage and distribution”. He added.

He further assured that credible investors with proven capability and financial muscle are encouraged to play in the sector, saying that refineries are at functional levels as the next step the federal government through the ministry of petroleum is taking is to ramp to optimal levels and add capacity.

On whether illegal refineries reportedly destroyed by security agencies could be converted to Modula ones, Ajulu emphatically answered in the negative stressing that product quality is very key. “Regulatory requirement for product quality demands lessened carbon footprint”, he said.

KELECHI EWUZIE