FG to review impediments to development of gas sector

The Federal Government, on Tuesday, said it is through the National Gas Expansion Programme (NGEP), reviewing existing policies, legal and regulatory frameworks, and commercial instruments that hindered the development of the local gas sector.

This was even as it stated that the country has a gas resource to provide stable and affordable power to Nigerians, compared to other countries.

The Minister of Petroleum, Timipre Sylva, made the disclosure at the virtual Society of Petroleum Engineers’(SPE), Nigeria Energy Industry Transformation Summit, themed: Changing Global Energy Landscape: Strategies for Industry Sustainability.

According to him, the development of an optimal framework for electricity generation based on natural gas would create a strong basis for providing electricity to all Nigerians.

He explained that the cardinal objective of the FG regarding gas utilisation is to reform and implement the promotion of a market structure that allows the utilisation of gas infrastructure, assets, and facilities on a common carrier and co-sharing basis.

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“Strategies that will promote the cost-effective distribution of the various gas streams by marine, rail, and road for achieving the most affordable, available, acceptable, and accessible gas to Nigerians are being formulated.

“Based on increased gas production, stable and predictable gas pricing framework, Nigeria will be able to attract further investment in this sector of our industry. The industry must be aware of the Government’s effort at stabilising gas pricing with the inauguration a few weeks ago, of a gas pricing committee, currently at work,” he said.

The Minister also assured that the proposed Petroleum Industry Bill(PIB) will provide frameworks that strengthen the contribution of natural gas to sustainable industry and national development in the medium and long term.

Earlier, the Group Managing Director(GMD), Nigerian National Petroleum Corporation (NNPC), Mele Kyari, stressed that for the industry to thrive in the face of the COVID-19 pandemic, there is need for stakeholders to evolve innovative ways to reposition the Sector for sustainability.

He said this could be achieved if industry players adopt a strategy that focuses on people, partnerships, profit and posterity.

Kyari explained that the new normal era brought about by the Coronavirus pandemic has more than ever, reinforced the need to upskill the human capacity within the Industry for the next phase, and develop the capacity to attract, train and retain people in the Sector.

“There must be collaboration across different dimensions; government, industry, academia and, particularly, with the communities where we carry out our operations. The social license to operate is critical to the Industry’s long term survival. Also, a partnership among Industry peers to chart new ways of resolving Industry challenges and preparing for tomorrow cannot be overemphasised,” he stated.

He disclosed that for sustainability, Industry players must learn to manage cost, improve efficiency and deliver required cash flow (margins) for reinvestment and expansion, stressing that without creating profit today, “we wouldn’t be in a position to take advantage of the opportunities that keep us viable and ready for tomorrow.”

NIGERIAN TRIBUNE