Operators outline solutions to achieve FG’s future Gas projections
Operators in the oil and gas industry have said that the plans by the federal government to make Nigeria the regional petrochemical, fertiliser hub may never see the light of the day unless the right operational environment is provided by government.
They observed that Gas sector in Nigeria holds out significant economic potential to Nigeria as plans by federal government through the ministry of petroleum to enhance gas and other derivatives to attract forex would just be a pipe dream without the requisite gas policy implementation.
Amy Jadesimi, managing director of Lagos Deep Offshore Logistics base (LADOL) says that for Nigeria to become the hub for oil and gas exploration in the West African sub-region, an annual investment worth $20 billion is required to grow the market and make it more competitive.
Jadesimi who observe that the industry is targeting 10 million standard cubic foot (SCF) of gas per day adding that with this huge market potential, Nigeria should naturally be the most attractive oil and gas investment destination in the world.
Listing the hurdles that must be overcome, she said that “there is need to end the long contracting cycle, the foreign controlled private monopoly strangling the industry and encourage greater collaboration among Nigerians in the public and private sectors.
Industry watchers are however concerned that the inadequacy of the existing gas processing, transmission and distribution infrastructure to support the current demand, may slow that process of growth suggesting that the managers of the economy must as a matter of urgency streamline the adoption of a national Gas Infrastructure Blueprint that seeks to address the need for rapid deployment of gas infrastructure across the country.
Dada Thomas, managing director, Frontier Oil Limited observes that the pricing structure and the nature of contracts remain a significant obstacle to the development of natural gas in Nigeria, saying that there is a need for a standardisation and harmonisation of the agreements.
“Nigeria has to be very smart and must act very quickly too. Another important and relevant dynamic is the apparent aversion of the IOCs for the midstream in Nigeria or even the downstream”. He said.
He further observe that while there are more innovative ways to achieve rapid infrastructure roll in gas, the lack of clarity create concerns.
He maintains that the Government cannot afford to fund the development of gas infrastructure at the pace that Nigeria’s socio -economic developmental requirements, adding that the gas sector is most amenable to private sector capital if the right conditions are put in place.
Nigeria with her huge natural gas reserve stands to benefits from increased capacity production, industry watchers insists saying that natural gas has the potential to engender rapid positive growth and enormous impact in the overall economy of our nation.
They maintain that while it is not difficult to decipher that ultilisation of gas has assumed a new dimension for both economic and technological development stressing that achieving the desire result in gas supply or the lack of it will remain a very sensitive issue with government involvement in unrealistic prices.
KELECHI EWUZIE