The Group Managing Director of Nestoil Limited Dr Ernest Obiejesi says the Power sector holds the key to stimulating growth in the domestic market. Dr Obiejesi was speaking at the 4th Nigeria Gas Conference which held in Abuja.
The Nestoil boss said the gas supply industry in Nigeria will experience a boom if the liquidity issues in the power sector were fixed. He explained that the Power sector accounts for over 80% of the domestic gas off take market. According to him, liquidity issues in the Power sector means that gas producers are owed huge sums of money for gas they have supplied. Dr Obiejesi said this situation is a huge disincentive for gas producers to invest heavily in any form of gas gathering infrastructure.
The Nestoil Group Managing Director commended the Federal Government for the recent Gas Flaring Regulation embedded in the 2017 Gas Policy, which he described as an audacious and innovative step by Government to discourage gas flaring. He said this initiative was however not far reaching enough. According to him, a permanent solution would be to address the liquidity issues in the downstream and power sectors to encourage much needed investments in gas gathering infrastructure that would eliminate gas flaring.