NGA Challenges FG On Gas Policy

By JOHN MEZE

The Nigerian Gas Association has charged the Federal Government to put in place a clear cut gas-focused policy as well as   a robust regulatory framework for the country's gas industry.
 This , it  claimed , in a communiqué they issued at the end of its sixth International Conference and Exhibition held at Transcorp Hilton, Abuja, recently, would engender confidence in the industry by financial institutions, encourage additional investment and stimulate growth in the industry as well as the national economy.
 The group further asked the government to       partner with the private sector to implement the Gas Master Plan which would provide the general framework for maximization of value from the country's gas resources  which 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.
 It also charged its members to take adequate steps to collaborate with stakeholders in furtherance of the outcome and objectives of the  conference so as to achieve the desired improvement in the gas industry ; outline clear key performance indicators (KPI) for mandatory local content and capacity development; develop and implement a mentoring program for students and the youth so as to sustain interest in the industry and encourage entrepreneurship and enjoined  Niger Delta communities to, among other things continually hold their state governments accountable and demand transparency from respective governments  and ensure harmonious co-existence between the gas industry players operating in their respective areas.
While expressing its gratitude to the government  and Media for their contributions to the success of the conference it stated that the association was able to arrive at its recommendations after observing that , global energy demand will increase exponentially in the future, resulting in increases in the demand for gas which  new challenge can only be met by advances in cost-efficient and environment-friendly technology, the Nigerian gas sector has evolved very rapidly over the years from a demand constrained situation in pre-1999 to one that is now supply constrained due largely to the ongoing power sector reforms, giving credence to the need for a regulatory body on gas pricing, especially as lack of commercial, legal and fiscal framework for the gas industry discourages investors from participating in the sector , just as limited infrastructure also inhibits growth ; there is still a lacuna in the regulation of the gas industry limited counterpart funding by government of its joint venture (JV) obligations and the security issues around the Niger Delta question are among the major challenges facing the gas industry in Nigeria today.
The funding challenge suggests a need for innovative approaches to deal- structuring, collaboration, flexible and creative financing structure among players in the industry.