NAPE asks operators to prioritise domestic gas utilisation above export

With the growing demand for liquefied petroleum gas (LPG) and compressed natural gas in the country, the Nigerian Association of Petroleum Explorationists (NAPE) has tasked operators to give priority to the domestic market before exporting in order to address gaps in the value chain.

According to NAPE President, Dr James Edet, the growing population needs to be served efficiently, considering the government’s domestic gas agenda and electricity needs in the country.

In a virtual chat with the media, Edet acknowledged the growing capacity of local oil companies in taking over divested interests of international oil companies.

“On gas, many people advocate that gas should be looked at more intently by deliberately exploring it. We should also improve domestic utilisation rather than exporting. We need to domesticate first before exporting.

“What is happening in the world today and in the country is that we are doing a lot of things in reverse. There were lots of industries in this country that generated funds locally before exporting for foreign exchange until some of the activities like population growth, insufficient electricity generation among others, broke the value chain.

“We are not gaining foreign exchange because we have lost balance. We need to understand that the population that we have today needs to be served and serviced. There is a market in the sub-Saharan African region. Exporting gas for revenue alone will make us lose focus. We need to take care of the domestic market before looking outwards,” he added.

Notwithstanding the momentum over energy transition, Edet argued that the oil and gas business would continue to be a good business for a long time and everyone is going to be a part of it.

He said: “Local players are already making inroads into the areas being left by the international oil firms. If divestments are made, work will continue and Nigeria will be better for it. Shell is not leaving but managing its portfolios by leaving the shallow waters.

“NAPE will continue to create a strong platform for its members and member organisations to continually seek the optimal value from exploration and production activities, as we are convinced beyond reasonable doubt that oil and gas will remain a predominant source of energy in the next few decades, amidst the energy mix.

We will continue to offer practical industry support through our external advocacy with our regulatory agencies, collaboration within the international oil companies, the independent oil companies, the marginal operators, service, and consulting organizations and all members at large.”