Operators see huge gas sector gain on the back of ongoing reforms

On the back of the ongoing reforms in the oils and gas sector, industry operators have said with the right gas sector policies put in place, Nigeria stand a good chance to harness and get maximum value from her stranded gas resources and also vigorously pursue investment at the utilisation end.

They are of the opinion that the country is endowed with abundant gas resources and the sector holds huge potentials for unprecedented growth, only to the extent the bottleneck as presented in the existing legal and regulatory framework provide robust technical and commercial framework for gas.

With75 percent of Nigeria’s power forecast for today and for the future hinged on thermo power plant which derives energy from gas, industry operators have said that to close the 4.7Bcfd gas demand shortfall in 2020, there is the need to also grow the gas industry especially at the utilisation end.

Ayodele Oni, a commercial lawyer and specialist in international energy investment law & policy observed that the push for virtual pipelines has increased in the last three (3) months and those relating to swap arrangements/ policies too, are on the increase and a number of foreign investors are indeed considering the idea of the virtue pipeline system and are looking to come into Nigeria to provide support to industries and productive activities which rely on gas.

Oni said whilst the private sector seeks to invest in same, government does need to provide an enabling environment through good policies and incentives (fiscal and otherwise), improved road networks and a robust rail system together with proper planning. Government also needs to think through the swap arrangements properly before enforcing same.

Isreal Aye, Director, Aspen Energy Nigeria Group observe opine that Nigeria needs to take immediate steps to open up to foreign investment; tackle issue around government monopolies in infrastructure; remove all obstacles to smooth business operations as this will make attract both local and foreign investments.

Industry close watchers maintain that some of the areas where gas has the potential of earning revenue include: Wide spread adoption and utilisation of LPG as preferred fuel for domestic cooking.

According to them “Adoption and utilisation of CNG as fuel for vehicles and generating plants for industries etc In recognition of the potentials of the Gas sub-sector a number of initiatives have been adopted to stimulate development of the Gas sector”.

KELECHI EWUZIE