Approved new national gas policy’ll augment revenue from oil, slash cost of cooking gas
Though the Federal Executive Council (FEC) made it public yesterday, Wednesday, the new national gas policy was passed in last week’s cabinet session.
The 100-page National Gas Policy seeks to set up a single independent petroleum regulator.
It also aims to separate upstream from midstream operations and to separate gas infrastructure ownership and operations from gas trading, the oil ministry said.
Key considerations for the adoption of the document include reducing the country’s dependence on crude oil by increasing gas exploration and facilities, and raising accessibility of cooking gas in the process.
Business Hilights recalls that the country has for decades relied on its ample supplies of oil to power its economy; it has recently observed that despite having a wealth of crude, the vast majority was sent overseas for refining, and the country instead has had to import refined fuels at great expense.
Currently, Nigeria has the world’s ninth largest proven gas reserves, at 187 trillion cubic feet. A move to using gas could reduce massive capital flights suffered while importing refined oil products.
Analysts say coupled with infrastructure investment, Nigeria could also improve its creaking power grid, which forces many with no power or those plagued by frequent blackouts to operate costly generators.
