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Strong indications are underway to show that current gas pricing crisis rocking the economy will soon become a thing of the past in no distant time.
Otherwise, revelations from a recent gathering of key stakeholders in Nigerian gas sub sector, who were in Lagos to discuss the industry are upbeat that by 2027, price of gas both for powering industries and domestic use will drop considerably.
At the meeting, experts listed four ongoing policies and projects that will resolve the crisis to include the upcoming commercialization of the 178 identified gas flare sites under the Nigerian Gas Flare Commercialisation Programme (NGFCP) scheme; inauguration of OB3; NNPC’s Seven Critical Gas Projects; and government interventions.
In his keynote address at the recent Lawyers in Gas Sector Conference in Lagos, the Program manager of NCFGP, Mr. Justice Derefaka, averred that “As soon as concessionaires are named and moved to sites, apart from instant drop in gas flaring experiences of Niger Delta residents, massive capture of hitherto flared gases will deepen availability and affordability.”
He added that the government is also projecting an increase in demand for gas supply in the nation’s domestic market by 393.33 per cent within the next eight years.
Derefaka was of the opinion that with the convergence of the coordinated government polices at deepening gas availability, greater power generation and improved sector efficiency would lead to a more dominant power sector and reduction in “Commercial Customers” on the gas value chain.
Recall that the Nigerian National Petroleum Corporation (NNPC), had projected that the demand for natural gas by the domestic market, which currently comprise mostly of power and industries, would rise from 1.5 billion standard feet per day (bscfd) to 7.4bscfd in 2027.
In his presentation at the Society for Petroleum Engineers (SPE), the Chief Operating Officer (COO), Gas and Power, NNPC, Saidu Mohammed, disclosed that “There has been an upsurge in the development of gas processing plants, and NNPC has responded by creating a subsidiary company in NGC, to drive all investments and partnerships to develop gas processing plants.
“As more gas-based industries (GBIs) projects are being developed, gas utilisation would significantly increase, which would have a positive effect on domestic industrialisation, employment, and economic wellbeing.”
In his contribution, the Special Adviser to the Minister of State for Petroleum Resources, Dr. Timothy Okon, revealed that critical challenges limiting the utilisation of gas in Nigeria is currently being addressed ahead of the emerging boom in gas availability.
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