Breaking News in Nigeria Today

Chevron wants collaborative value-chain mindset to unlock Nigeria’s gas potential

Chevron Nigeria Limited has called for a collaborative value-chain mindset as a critical requirement for unlocking Nigeria’s gas potential for its much required socio-economic development.

Speaking recently at a forum organised by Society for Petroleum Engineers (SPE) in Lagos, James Okereke of Chevron Nigeria/Mid Africa, stated, while delivery a paper titled: “Gas Utilisation in Nigeria: Challenges, Opportunities and Outlook”, that “collaborative value-chain mindset is a critical enabler to removing barriers/limitations and maximising the opportunities for the Utilisation of natural gas resources to power Nigeria’s socio-economic development.

Emir of Ilorin’s mother dies at 124

He said in sustaining domestic gas supply in a regulated market, not purely determined by the demand and supply dynamics, certain building blocks should be considered in the gas pricing framework.

He said stability and predictability of government policies and regulations and guidelines are essential in maintaining the sanctity of long term gas supply contracts.

“Payment security is to ensure healthy cash flow which is essential for the development of gas sector and the economics to cover costs and guarantee returns on investment.

“Robust, healthy, vigorous and continuous engagement amongst key stakeholders is key to underpin more sustainable strategy and framework.

“With these and other key enablers, Nigeria should benefit from its huge gas Resources to develop its economy,” he said.

He further listed the key enablers to include a seamless has value chain and enabling commercial framework, globally competitive fiscal, strong vital infrastructure and reliable cooperation, sustainable financials and policies and a conducive business environment.

Meanwhile, Okechukwu Mba, General Manager, Gas, Seplat Petroleum Development Company Plc, argued that gas would grow from source of revenue earnings to an economic enabler if domestic usage of gas can be improved upon.

Nigeria has 200 trillion cubic feet of gas reserves, making it the ninth largest reserves in the world but total gas production remains 7.6 standard cubic feet per day with about 44 per cent of total production exported. Only 14 per cent of gas available for domestic economic growth, he said this must expand rapidly.

According to him, “in 2017, less than 10 per cent of gas produced was supplied to the power sector. Consequently, some power plants did not have sufficient gas to generate electricity. Certain heavy duty industries such as cement, aluminium and steel plants run on less efficient HPFO/diesel. Nigeria’s gas sector suffers from inadequate gas distribution infrastructure and lack of bankable agreements.”

Loading...

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More