Nigeria can only realize its dream of becoming a gas nation if the key fundamental which is gas appropriate gas price, is put in place.
The price of gas cannot continue to be regulated by the government and yet it would be expected to attract the desire investment.
This analysts say will not produce the enabling environment to attract
Investment to the gas subsector.
According to Ola Alokolaro of ADVOCAAT Law Practice, he said, it is only with the right pricing of gas that guarantees a good rate of return on investment, will we see investment in the gas exploration production treatment, transportation and exploitation of the product.
In addition, the fiscal for gas utilization must also be favorable and the impending Petroleum Industry Bill (PIB) must take cognizance of these key fundamental fiscals.
“It is only with the right pricing of gas that guarantees a good rate of return on investment will we see investment in the gas exploration production treatment, transportation and exploitation of the product. In addition, the fiscal for gas utilization must also be favorable and the impending PIB must take cognizance of these key fundamentals”, he said.
The desire for Nigeria to use her gas resource as catalyst for economic growth, was again demonstrated President Muhammadu Buhari recently express the determination to deploy every available capital to develop it and ensure energy security, Transportation, manufacturing and industrialisation.
By so doing, the economic base of the country would have witnessed a marginal diversification from oil as a major source of revenue.
Creating a proper enabling environment for growth of gas would help to mitigate against the adverse economic consequences which she might experience on account of Energy Transistion.
Energy Transition will certainly create crisis for countries that depend on fossil fuel as a major source of revenue.
To create an enabling environment that would advance the course of gas development will however not be difficult to realize, the minister of state for Petroleum Resources, Tmipre Slyva has assured stakeholders in the industry.
According to him, the Prseident, Muhammadu Buhari has the political will to ensure that Nigeria becomes a gas nation, based on her huge gas deposit.
The minister disclosed this at the Pre-summit conference of the Decade of Gas, in Abuja.
He said that President Muhammadu Buhari’s administration would ensure that the country ‘s vast natural gas resources is taken advantage of to encourage industrialisation.
“if you remember, the economic plan of this administration revolves around utilisation of natural gas.
“The four key areas are, Energy Security, Transportation, Manufacturing and Industrialisation.
” The common denominator is the natural gas, as it is the major fuel to power generation, transportation and key ingredients for manufacturing fertilizer for agriculture.
“I can assure you that President Muhammadu Buhari has the political will to surmount the challenges to continue on the pursuit to transform Nigeria as a gas nation,” he said
According to him, natural gas is also needed in the petrochemicals for manufacturing, adding that it is no longer acceptable that in spite of the huge deposit of gas, the gap in power supply and demand is still huge in the country.
“We must deal with energy poverty in this country.
“We must find a way to unlock the natural gas potential of this nation and drag over 120 million of our people out of energy poverty,” he added.
He said that the aim of summit was to achieve a robust roadmap that would drive the utilisation of gas in country, using it for economic growth and development.
In his remarks, the Group Managing Director of the Nigerian National Petroleum Corporations ( NNPC) Malam Mele Kyari, group managing director of the Nigerian National Petroleum Corporations ( NNPC had remarked at Pre-Summit Conference this meeting is coming at the most crucial time, as the world transits to cleaner energy.
He said that Nigeria was set to play strategic role in this New World Energy Order.
“Technology and Innovation is facilitating a new energy transition aimed at de-carbonsing the world and safeguarding the climate.
“But renewable energy sources of solar and wind, a key component of the new energy mix are influenced by seasons and are non-transportable to demand centres that are short of wind or sun.
“A transition fuel is therefore necessary and clearly unavoidable,” he said.