Why West Africa need effective gas master plan implementation

The gas industry across West Africa region is expected to play a vital role as the clamour for gas to replace fossil fuel gain momentum.

It is the expectation of not a few industry operators that the hope to achieve sustainable supply growth in gas to the domestic market across the region through bankable Gas Supply Agreements is hinged on the creation of a fully commercialized liquid gas market.

However, just like other challenges bedeviling the West Africa region, implementation of roadmaps continues to be an issue.

Nigeria as a major gas province in the region released a comprehensive gas masterplan in 2008 but its implementation have been hampered by lack of funds, failure to resolve commercial terms and create a stable fiscal and regulatory environment.

In West Africa, with plans to utilise gas for other industrial uses beyond power generation such as fertiliser and petrochemicals, analysts are of the opinion that approval of an effective Gas Master Plan would address the region’s infrastructure gaps.

Industry close watchers maintain that governments across the region must conscientiously strive for balance between domestic gas price and commercial gas price and rethink a mandatory domestic gas obligation for producers.

Emmanuel Kofi Armah-Buah, Ghana’s minister of petroleum appears to be taking to lead to fast track the growth of gas industries.

He was recently quoted to have said that ministry under his watch has begun work on the development of a gas policy and a gas Act that would provide a transparent regulatory framework for the gas industry.

According to him, “the policy will address infrastructure requirements such as funding, institutional mandates for gas sector agencies and provide a revised gas pricing policy reflecting our developmental priorities as a country”.

The petroleum minister further noted that with the various projects outlined by the ministry, gas volumes from indigenous fields will reach 350 million standard cubic feet per day (MMSCFD) by 2019. This is anticipated to be sufficient to generate over 2,000MW of power.

Emmanuel Ibe Kachikwu, Nigeria’s Minister of State for Petroleum Resources, insists that Gas policy will try and change the country’s dynamics from being an oil-producing country to be a gas producing country adding that the Federal Government is committed to providing a conducive business atmosphere to ensure stability, high productivity and a better framework for globalising Nigeria’s gas sector.

Kachikwu said strong government demand for local content investment through creation of infrastructural facilities and insisting work is done in Nigeria should be of paramount importance.

Analysts insists that the Federal government need to provide payment guarantees to gas suppliers who provide gas to power plants who owe gas suppliers billions of naira and address the challenge of pipeline sabotage likely in Nigeria.

KELECHI EWUZIE