Monday, 23 October 2017

Nigeria To Earn $3.3bn Annually From Gas.

With appropriate legal and fiscal policy capable of driving investment in the midstream subsector of the oil and gas industry, Nigeria will be in a position to earn $3.3 billion annually, LEADERSHIP findings have revealed.

It was gathered that the country’s gas sector could generate substantial revenue provided the legal policy, especially fiscal policy and commercial frameworks, are encouraging for investors and provide a fair share for the Nigerian government and investors alike.

It was also learnt that if Nigeria were to generate 10,000 megawatts (MW) of power from gas fired power plants this could generate some $3.3 billion dollars gas sales revenue annually.

Confirming this to LEADERSHIP, Engr. Dada Thomas, president of Nigeria Gas Association (NGA), said if Nigeria were to supply the agreed gas volumes for the West African countries, government could equally generate income in excess of $200 million annually.

Thomas who is also the chief executive officer of Frontier Oil added that if 500,000 metric tonnes annually of liquefied petroleum gas (LPG) consumption locally is achieved, Nigeria could add another $500 million annually in revenue.
He said as the investments are significant so are the potential revenue, even as key policies, legal and commercial decisions are required to make it all come together for good.

He observed that though Nigeria has done well in reducing gas flaring over the years from 2 billion standard cubic feet per day in 2015 to about 750million standard cubic feet per day today, making her the 5th largest nation flaring gas in the world, this still equates to burning $700 million annually or wasting fuel that could have been used to generate nearly 3000MW of electricity.

He, however, said that the federal government appears to be very determined this time to achieve zero routine flaring by 2020 and has initiated the Nigerian Gas Flare Commercialisation Programme to help achieve this objective.

Thomas expressed worry that though the country has had sanctions in the form of a penalty of N10 (equivalent to $0.50) per thousand cubic feet of gas flared for many years, operators often pay the penalty rather than implement flares out programmes.

By China Izuora.

Full story at Leadership.

No comments:

Post a Comment