LPG importation will affect growth in gas sector
…Key investors to inject $500M in Nigeria’s Gas
By Uthman Salami
The Department of Petroleum Resources, (DPR) has warned against granting import license for Liquified Petroleum Gas (LPG), saying that this act would hinder the projected growth in the gas sector.
The Director, DPR, Sariki Auwalu, insisted that Nigeria had abundant and sweet gas waiting to be explored and the policy direction of the Minister of State for Petroleum Resources, Timipre Sylva, on gas is expected to attract humongous investment that will help in transforming the economy.
Auwalu said Nigeria produces about 8 billion standard cubic feet of gas daily, exporting 3.5 billion standard cubic feet of gas and domestic utilisation now standing at 2,8 billion standard cubic feet of gas daily.
He declared that what was needed to do at this point was to drive policy to mature the domestic gas market.
While reviewing implementation of the Nigerian Gas Transportation Network Code (NGTNC), launched last year, Auwalu said some potential investors are targeting investment in the domestic gas value chain.
He added that the Master-Plan is a guide for the commercial exploitation and management of Nigeria’s gas sector and aims at growing the Nigerian economy with gas by pursuing three key strategies to stimulate the multiplier effect of gas in the domestic economy, position Nigeria competitively in high value export markets and guarantee the long term energy security of Nigeria.
Meanwhile, the Department also revealed that potential investors who have observed transparency in policy implementation in the midstream sector of Nigeria’s oil industry have expressed interest to invest about $500 million across the sub-sectors value chain.
He said that strict implementation of the NGTNC, has helped to grow Nigeria’s Gas market coverage with a pricing regulations now in place.
During the period of review the DPR has licensed twelve shippers while three applications under processing.
In addition, he said the Department has licensed one transporter and three agent licensees and that has so far increased shipping industry capacity.
Also, the Code has helped to upgrade gas transmission and distribution which is now conducted in global best practice.
The Director also disclosed that flare put has come down to 8 per cent which he said is a significant milestone.
Auwalu, said moving forward the DPR, will intensify collaboration with relevant partners and stakeholders in the oil and gas sector to boost delivery of gas to the domestic market.
The code is a contractual framework between the gas transportation network operator and gas shippers that specifies the terms and guidelines for operation and use of the gas network. The code aims to provide open and competitive access to gas transportation infrastructure.
Auwalu, said the framework would help to grow gas infrastructure, expand gas utilisation, curb gas flaring and provide codes to standardise the gas value chain in line with global best practices.
The NGTNC was part of the key reforms instituted by the President Muhammadu Buhari Administration to expand domestic gas-to-power, gas-to-industry, gas-to-manufacturing and mitigate the challenge associated with gas flaring in the country.
The gas codes would go a long way in deepening economic development, improve gas supply, boost liquefied petroleum gas supply, and attract more investment opportunities in the nation’s gas value chain.
