Amid scarcity of cooking gas in Nigeria, the Federal Government, yesterday, hinted of a new tariff that would encourage availability.
Currently, there are indications that multi-billion dollar gas-related projects being planned are struggling with stocks.
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The Nigeria LNG Limited, had earlier this month, disclosed that its productivity was down by almost 50 oil production.
A report released earlier this month by Nigerian Extractive Industries Transparency Initiative (NEITI) noted that only about 23 per cent of deep-water asset was productive in 2021, even as International Oil Companies (IOCs) are looking forward to a more favourable fiscal outlook to boost their operations in deepwater.
Vice President, Kashim Shettima, while speaking at the sixth Value Chain Annual Lecture said government would consider the right tariff that would enable the country to move towards non-associated gas exploitation.
Despite boasting gas reserve of about 209 trillion standard cubic feet, Nigeria’s current discoveries came from accidental finding by those exploring for crude oil .
The Vice President, who was represented by the Special Adviser to the President on Energy and Power Infrastructure, Sodiq Wanka, said the country has over 200 trillion cubic feet of untapped gas resources and ranks ninth globally in terms of proven reserves.
He said: “Gas is critical to the nation’s power supply, not only accounting for 80 per cent of power generation today, but expected to be the dominant power generation source by the end of this decade, therefore exploiting the nation’s gas reserves cannot be over-stated.
“Gas is a critical transition fuel for the country’s ambitious climate targets of being net-zero by 2060. The number of industries that are gas-based and those that utilise gas for power are many, from fertilizer and methanol to cement and consumer goods. A booming economy built on the exploitation of gas reserves can vastly enhance the fiscal position of the Federation.”
He noted that the importance of critical gas transport infrastructure, processing facilities and other midstream infrastructure remain sacrosanct, adding that the number of power plants and factories that has built up around the Escravos-Lagos-Pipeline System and its various is a testament to the essential need of gas.
He added: “In terms of upstream gas, the commitment of the government in ensuring the right tariffs to encourage exploitation of non-associated gas remains strong. The government will also not rest in continuing to pursue a holistic approach to the issue of security of petroleum assets – from strengthening the operationalisation of the Host Communities Trust Fund to closer community engagement, surveillance and prosecution of identified vandals.”
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