‘Willing buyer-willing seller best model for gas pricing’
Chairman/Managing Director of Chevron Nigeria Limited, (CNL) Jeff Ewing has called on stakeholders in the gas industry to support and enable the willing seller – willing buyer gas pricing model, to ensure the viability of the sector.
Ewing who spoke in Abuja at the 11th Edition of the Nigerian Gas Association Conference and Exhibition, also called for the privatization of the various value chain sectors, as part of measures to untangle the bottle necks in the industry.
Represented by the Director, Downstream Gas, Sanjay Narasimhalu, he posited that opportunities for investments into the Nigerian gas sector were enormous.
The opportunities, he stated, include, “Transitioning from an oil-based economy to a more integrated oil and gas economy and end routine gas flaring.
“Deliberate exploration for non-associated gas to support the Nigeria Gas Master Plan, with a focus on high liquid yield non-associated gas resources to optimize the gas development project economics.
“Growth of new industries made possible from the abundant resources and competitively priced gas supply”.
Jeff noted that CNL has contributed immensely to the Nigerian government’s gas master plan through the various gas projects it has embarked on and that the company is the highest contributor of high quality gas to the domestic market in Nigeria since 2015.
While appreciating the talents in the industry, the workforce that make things happen he stated that through investments in gathering and processing of associated gas, routine flaring has been reduced by over 90% from 2008 to 2017 in CNL’s operations.
He said the company has made significant effort in the gas sector development in Nigeria, adding that “CNL is optimistic about the future of oil and gas business in Nigeria. We have been making significant investments in the country for over 50 years and expect to do so for many more years to come”
Meanwhile chairman, House of Representatives Committee on Gas Resources, Hon. Fred Agbedi has applauded the Global Memorandum of Understanding (GMoU), the Community engagement strategy adopted by the NNPC/Chevron Joint Venture as a panacea for peace in the Niger Delta region.
Fred Agbedi gave the indication during a panel session of the conference and exhibition
The lawmaker represented by Ayebide Fatiede noted that through the GMoU model, Chevron has proved to the whole world that peace and harmonious relations with Niger Delta communities is possible and practicable.
Speaking on the impact of oil pipeline vandalism on oil and gas infrastructure development in Nigeria, Abedi insisted that the cause of restiveness among the youths in the area is anger occasioned by neglect and insensitivity of the government to the plights of the people.
He said that Chevron has instituted an effective system of engaging with the communities in a profitable manner, which has continued to enhance cordial relationship between the communities and the company.
“The GMoU by Chevron has created the desired enabling environment for oil and gas operations in the Niger Delta. What Chevron is doing is to bring the communities together and work with them for sustainable socio-economic development in a transparent and genuine way. I urge other organizations to emulate the NNPC/Chevron Joint Venture for steady development inn the Niger Delta region,” he said.
Commenting on the GMoU, Esimaje Brikinn, General Manager, Policy Government and Public Affairs (PGPA), Chevron Nigeria Limited, stated that since 2005 when the GMoU was established, the GMoU has recorded significant achievements especially in areas of education, health, and economic development. He said that the NNPC/CNL Joint Venture has contributed over NGN20.6billion to the RDCs to implement projects and programmes for about 600,000 beneficiaries in more than 400 communities.
“In terms of managing conflict and enhancing peace in communities, the GMoU story is one we are very proud to tell and has resulted in very impressive footprints in various communities and the model has helped improve CNL’s relationship with its neighboring communities, as it created a clearer and more predictable channel for dialogue,” he noted.
He commended the commitment of the traditional institutions, the Government security forces, the community and leaders of the Regional Development Committees (RDC) for driving the multi-stakeholder collaboration for asset protection and stressed that CNL continues to work to strengthen relationship with these stakeholders. “The community leaders have shown great commitment to this process and has seen the connection between CNL’s operations and their livelihood. They understand that an enabling environment for our operations translates to continuous benefits to the communities in terms of our contributions to their socio-economic development,” he explained.
Olusola Bello