DPR obtains $500m gas investment proposals in one year
The Department of Petroleum Resources (DPR) said it had received about $500 millon gas development investment proposals since the implementation of the Nigerian Gas Transportation Network Code (NGTCN) began a year ago.
Mr Sarki Auwalu, Director, DPR, made the disclosure during an interactive session with the media to mark the first year of operationalising the network code in Nigeria on Tuesday in Lagos.
The NGTCN was inaugurated on Aug. 10, 2020 by the Minister of State for Petroleum Resources, Chief Timipre Sylva.
It is a specialised set of rules developed by the DPR to guide the implementation of a fair and non-discriminatory open access for gas transportation in Nigeria.
Auwalu, while reviewing the programme, noted that it had improved investors confidence in the evolving domestic gas market.
He said: “Confidence of investors across the domestic gas value chain has shown positive trend through specific requests for DPR’s support for gas supply to the tune of over 500 million standard cubic feet per day and for investments of over $500 million.
“The network code investment areas that the DPR has received proposals on include power generation, ammonia for fertiliser, methanol plant and domestic liquefied natural gas.
“Others are virtual pipeline systems, new gas hubs and the establishment of a Nigerian Gas Trading Exchange.”
According to him, the NGTNC has also improved domestic gas market linkage between downstream demand points and upstream gas supply opportunities.
He said the construction of gas pipelines across the country and the increased investment brought by the NGTCN would create job opportunities for Nigerians.
Auwalu said it had also increased the activities of investors like gas shippers, suppliers, agents on the network and had further promoted gas availability, accessibility, affordability and awareness.
He added that the network code had improved transparency and predictability in gas trading, thereby stimulating the growth of gas business and deepening the performance of the Nigerian gas value chain.
