‘Poor Policy Framework  Bane Of Gas Sector’

By JOHN MEZE

Weak policy frame work to support further development of the gas sector of the country has been advanced as one of the impediments standing in the way of the growth of the industry in Nigeria .
Speaking during a two day conference organised by the Nigerian Gas Association, at Abuja, a cross section of experts in the oil and gas industry of the nation  laid the blames of the near  failure of the gas sector  at the door steps of the federal government .
The Chief executive Officer of the Nigerian Liquefied Natural Gas (NLNG) Chima Ibeneche , was the first to fire the first salvo when while delivering his paper he said that there   are challenges to the timely development of gas production, collection, processing plant and  pipeline capacity to deliver the gas to the full complement of aspirant end users.
He posited that these challenges need to be timely, adequately and  sustainably addressed for the growth of the industry which he added has the potential of Demand growth  projected to grow from 2,854 billion cubic metre in 20005 to 4,779 billion cubic metre  in 2030.
Speaking on the gains accruable to the country from both species of gas being handled by the NLNG, Ibeneche informed that there exists large scale value from gas resources which includes macroeconomic stimulation with multiplier effects which would in turn transform into  new jobs, investments, contracting opportunities, GDP growth as well as sustainable community development.
 “ Nigeria is well endowed with Natural Gas  and  optimising its value is a Nigerian priority .Nigeria is also strategically located to supply into two of the fastest growing world gas markets” he said .
The Association , also in its communiqué after the conference was more out spoken when it charged  the government   not to  fail in implementing  the Gas Master Plan which would provide the general framework for maximization of value from the country's gas resources  and  would lead to job creation and harmonization with export-oriented projects; create attractive fiscal incentives, such as tax holidays, loan guarantees and duty waivers, for developers and investors in the industry ; appraise the emerging opportunity in the Trans-Sahara gas project ; address the issues of all stakeholders by providing enabling environment and funding to ensure that routine gas flaring is eliminated; invites banks and other financial institutions to increase their  participation in the gas industry through the provision of funds to potential investors.
However , the Chief Executive Officer of ExxonMobil in Nigeria , Mr. John Chaplin,said that a stable commercial framework and regulatory environment is necessary to provide the foundation to support investment decisions.   
 “Integration of these pieces together with the cooperation of Government / NNPC and industry is essential to unlock the value of Nigeria 's discovered gas resource and develop a vigorous gas exploration program.  This will help ensure Nigeria realizes the full potential of it's vast gas resources.
Fitting the Pieces Together will ensure Nigeria is well positioned to meet future challenges .
He opined that  “The only way to help meet FGN's goals is for all parties to work together”
John Chaplin while adding  that developing technology alone will not solve the supply and demand imbalance that exists in Nigeria  said that the solution also requires vast amounts of capital and a commercial framework within which to work and that the  integration of these pieces is critical to developing these vast gas resources.
 “Accordingly, the role government plays  in maintaining stable fiscal and regulatory frameworks, providing access to resources and allowing markets to operate freely  is crucial to ensuring development of future energy supplies.  These elements are vital to our industry, and as we've seen, energy is vital to economic growth.
Countries that want to expand or develop their energy industry and compete globally for investment capital must have these elements in place to allow them to compete” he said.