NGA harps on N15tr investment opportunities in gas sector
The Nigerian Gas Association (NGA) has put the level of investment opportunities in exploration /production, processing, supply, and distribution of gas in Nigeria at $55 billion (about N15 trillion).
The President of the association, Bolaji Osunsanya, who made this disclosure in Lagos, at a media briefing to outline events for NGA’s yearly general meeting and business forum, said that the gas sector has potentials for growth and to contribute positively to the economy.
With 1,000 MW of Independent Power Plants (IPPs) capacities idle due to a lack of gas delivery, Osunsanya disclosed that indigenous players were making significant strategic investments in gas and virtual pipelines to power IPPs and industrial customers.
Osunsanya, who is also the Chief Executive Officer of Oando Gas and Power Limited, said that turning natural gas into a profit-making venture requires huge investments in infrastructure that address the five component areas of gas availability, gas affordability, deliverability, funding, and legal and regulatory framework.
According to him, government and operators alike recognize that the first step is to provide a legal and regulatory framework that will enable the removal of persistent obstacles to growth in the sector.
He said that the government has taken some positive steps to develop gas including the Gas Master Plan rolled out in 2008 along with partial privatization of the power sector over the last two to three years.
This, he said, has led to a significant increase in the price for natural gas supplied for power generation to around $2.50/Mscf with further increases requested by producers.
He noted that the gradual movement of the market towards the concept of “willing buyer, willing seller”, and the government’s willingness to ensure an investment-friendly environment, bode well for Nigeria’s long term gas development.
He expressed optimism that Nigeria’s gas reserves could potentially be as high as 16.8 trillion cubic meters, compared to the current proven level of 5.2 trillion cubic meters, if deliberate measures are taken to explore for gas as opposed to coincidental discovery during oil exploration.
He disclosed that NGA’s 2016 business forum has been scheduled for June 29 together with the association’s yearly general meeting. “At the forum, industry stakeholders and policy makers will share perspectives on strategies to re-energize and maximize our natural gas potentials.
“While the global debate about hydraulic fracturing for shale gas continues to grab the spotlight, closer to home, the discourse about the role of gas in Africa’s energy mix, particularly Nigeria, needs to continue. With this in mind, the NGA continues to probe at the current state of the natural gas industry in Nigeria in addition to evaluating the potential for its future development”, he added.
Speaking on the association conference coming up later in the year, Osunsanya said the association’s 10th International Gas Conference and Exhibition taking place from October 30th to November 2nd in Abuja will focus on the‘ Nigerian Gas Roadmap: Potential for Domestic, Regional and Global influence.
“The three day conference and trade exhibition will attract high-level executives from IOCs, Independents and Marginal Oil Fields; officials from state and National Assemblies, and regulatory authorities; professionals and technocrats from the wider oil & gas industry; the diplomatic corps, and decision makers from affiliate industries. Collectively they will provide meaningful insight on how to address and enhance policies, regulations, and other pertinent issues”, he added.
He disclosed that the round table will provide stakeholders with a platform to continue dialogue regarding the implementation of initiatives necessary to stimulate growth, stable revenue generation, and guarantee long term natural gas exploitation.