Stakeholders see independent Gas sector framework as key to drive investment
Stakeholders in the oil and gas industry insists that the best option to grow Nigeria gas sector in 2017 and beyond is the proper decoupling of the gas sector from the oil sector with frameworks that will enable it to progress independently.
They observed that the gas sector in Nigeria is progressing as an attachment to the oil sector and thus gas is sometimes treated as an incidental resource saying Nigeria’s oil and gas laws contain many evidences to this and it should be discontinued.
Ayodele Oni, an energy expert and lawyer while commenting on the best approach to grow the gas sector said there is the need to incentive gas projects and this may mean introducing a “gas preference” rule in the award and renewal of our current acreages.
Oni opines that the gas price must also be liberalised so that operators are incentivised to enter into the industry.
According to him, “We also need to aggressively clamp down on flaring. The government may need to guarantee gas supply agreements so that potential entrants into the market are assured of payment as the current off-takers are not yet fully stable”.
Odion Omonfoman, an energy consultant and CEO, New Hampshire Capital Limited observed that the gas industry still grapples with several challenges.
Omonfoman opines that aside for setting the right framework for gas, government in 2017 must as quickly as possible resolve the Petroleum Industry and governance Bill issues saying that without the Fiscal terms of the PIB being resolved, there would be little Investment in Gas production, particularly Non – Associated Gas.
According to him, “Government needs to provide some form of payment guarantees to gas producers to ensure that they are paid for every gas molecule to the Power Sector; conduct a Marginal field bid round to free up small fields from which more gas can be produced into the domestic market.
Pointing the way forward, Analysts urge government as a pathway to separating gas sector framework from that of oil to provide a dedicated gas exploration licenses and gas utilisation specific laws. Saying that once this is achieved, Nigeria will see improvements and accelerated efforts in other areas such as infrastructure, pricing, technology and skills development.
On his part, Wumi Iledare, an energy expert insist that Domestic use of Gas to Fuel the Economy is preferred to following the same path with export oriented crude Oil.
To him, “The market is big enough for our Gas to be dedicated to grow the economy of Nigeria or at best West Africa Economy, which we benefit Nigeria greatly”.
KELECHI EWUZIE