NAN-HE-14
Gas
By Yunus Yusuf
Lagos, July 11, 2017 (NAN) The Society of Petroleum Engineers (SPE), Nigeria Council, has lauded the Federal Government’s decision to begin implementation of the country’s Gas Master Plan to move the economy from oil to gas.
Mr Saka Matemilola, the Chairman SPE, Nigeria Council, gave the commendation when he briefed newsmen in Lagos on Tuesday.
Matemilola also spoke on the association’s upcoming conference in August and its readiness to support government in achieving the set goals.
He said that the implementation would diversify the gas supply options within Nigeria, ensure security of supply and extend gas penetration in the domestic market in order to facilitate the growth of the electric power.
He said that it would also enhanced agricultural, industrial sectors: gain a presence for Nigerian gas in international markets; and operate a gas industry with a clear division of roles between private and public sectors.
According to him, investors will take advantage of about $51 billion investment opportunities that exist in the midstream and downstream gas sector to achieve the growth phase in the industry in Nigeria.
“It is time for gas. We need deliberate decisions and policies to decouple oil from gas and attract investment.
“We need to do that now. Investments in the gas and LNG industry are declining.
“It is already difficult as things stand. To find Foreign Direct Investment (FDI) and growth in the gas industry has been cautious after the recent down-beat global crude oil price.
“In addition to this, Nigeria is ranked 167 of 189 countries in the ease of doing business index,” he said.
The chairman said that he foresee increased gas demand in future and if the country continues the self-inflicted barriers in the gas industry, Nigeria would miss the opportunity of becoming a major player in the global energy mix.
He said that the industry had benefited the economy, diversifying the revenue and export base as well as channelling Foreign Direct Investment (FDI) into the country, creating jobs and contributing significantly to the local manufacturing capacity in the country.
On the forthcoming Nigeria Annual International Conference and Exhibition (NAICE), Matemilola said the conference would focus mainly on collecting and encouraging the dissemination of technical knowledge and technologies relating to the oil and gas industry.
He added that the conference would also provide an E&P market place for companies in Sub-Sahara Africa.
“In its over 40 years, NAICE has grown to become the largest upstream technical knowledge focused Oil and Gas event in Africa attracting industry regulators.
“High level government officials, petroleum technology professionals at all levels and other key oil and gas industry stakeholders.
“It has sustained its tradition as a platform for discussion of pertinent issues across the oil and gas industry and has generated thought provoking ideas that have shaped policies and practices for our industry,” Matemilola said.
He said that the conference would x-ray different stakeholders’ perspectives for addressing the challenges the industry currently faces and how to take forward the learning.
He said that the current trend of oil price had shown that the country should be looking at a ‘’lower for longer’’ operating model.
“Thus, we will encourage discussions on key areas that contribute directly to production costs, from the perspectives of the regulators, operators and service providers with a view to take forward the shared best practices.
“The conference will feature a number of plenary sessions designed to dissect the theme further providing opportunities for a diverse team of industry technocrats and heads of government regulatory agencies from within Nigeria, Africa and beyond to share very valuable insights,’’ he said.
NAN recalls that Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, recently disclosed that about $35.4 billion investment was required in the gas exploration and production activities, power plants projects, fertiliser plants, virtual pipelines and flare gas commercialisation initiatives.
The GMD also added that $16 billion investment would also be needed in the Free Trade Zones (FTZ) infrastructure development and concessioning, port infrastructure and central gas processing facilities.
Others are, gas transmission, LPG plants, real estate development, pipe milling and local fabrication yards, among others. (NAN)
YO/OFN/EAL
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Edited by Felix Nwadioha/Ekemini Ladejobi