…Additional 120 KM under project stages
Federal government has declared significant progress in gas infrastructure development, saying it is close to delivering 620 kilometers of pipeline in the coordinated pan-industry effort to deepen the domestic market and propel industrial growth. Out of the length, 500 kilometers of pipeline have been completed while another 120 kilometers are near completion.
However, Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Joseph Dawha, whose presentation was delivered in a panel session at the just concluded Offshore Technology Conference (OTC) in Houston, Texas, United States, stated that the domestic gas industry still has infrastructure gaps. The infrastructure and facility deficit in the sector, according to him, presents huge commercial opportunity for investors at the prevailing period of low oil prices. The UNION reports that gas infrastructure development is one of the key cardinal targets of the Nigerian Gas Masterplan (NGMP) driven under the Gas Revolution programme enunciated by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke.
Under the plan, government activated programmes that provide commercial incentives to encourage private investments in gas production, processing and transportation. The aim is to create a robust national gas grid network that would leverage industrial activities along the gas corridors. Whereas government directed operators in the industry to key into the programme by harnessing gas resources for monetization and flare reduction, the Nigerian National Petroleum Corporations (NNPC) was mandated to drive development of common infrastructure that would channel processed gas from production hubs to industrial demand centers.
Also, price correction which brought up the domestic gas prices to $3.30 per 1000 standard cubic feet ($3.30/1000scf) has been enforced to reduce the attraction of investors to export projects and raise the lucre of domestic supply. Dr. Joseph Dawha pointed out that the falling international prices of crude oil and rising prices of domestic gas have provided huge commercial option for asset holders in the country, stressing that the downturn in oil prices could turn to gas advantage for investors in Nigeria.