The Managing Director of the Nigerian Gas Company Limited (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), Mr. Dafe Sejebor, has listed factors that mitigate against the development, supply and monetization of gas resources in Nigeria, The Nation reports.
He said a huge volume of gas meant for the domestic market is lost through vandalism. He also highlighted the huge amounts spent on the repairs of vandalised pipes, adding that about N2.5 billion was spent on pipeline repairs between January and June this year alone.
He also said the reluctance of upstream oil and gas companies to invest in domestic gas production as well as the uneconomical gas-to-power price framework is stalling the growth of the gas industry. He also added the inadequate funds for infrastructure development and limited appetite of Nigerian banks to invest in long to mid-term projects as well as host community issues, as factors that work against the industry’s growth.
Sejebor, however, said the government was working to address the issues. He said among the policies being implemented include scalable infrastructure, a gas pricing regime to sustain supply growth in the long term, world class and bankable gas supply and purchase agreements (GSPA) as well as the gas network code while the transmission tariff is pegged at a minimum of $0.80 MMscf to justify investments on gas infrastructure.
To further boost gas development, the NGC boss said the company is in discussions with current international and indigenous gas producers in the country to boost output.