The Honorable Minister of State, Petroleum Resources, Chief Timipre Sylva has assured Nigerians that the Federal Government is living no stone unturned at ensuring that the enormous quantum of gas being wasted through flaring is channelled towards generating electricity, and making same available to them at affordable rates.
The Minister gave the assurance while delivering his address at the Society of Petroleum Engineers’ (SPE) Nigeria Energy Industry Transformation Summit (NEITS) Summit in Abuja. The Minister told the gathering that Government through the Ministry of Petroleum Resources is collaborating with stakeholders in the oil and gas sector in that regard, noting that the growth of the Nigerian economy is predicated on uninterrupted power supply.
Speaking further, Sylva posited that, in comparative terms, Nigeria is in a more auspicious position to deliver electricity to its citizens at modest cost than most countries. He added that the development of a framework for gas-based electricity generation will enhance the drive for providing electricity for Nigerians.
The Minister informed that government is putting necessary measures in place to ensure availability of electricity for Nigerians. Such measures according to Sylva include increasing the network of gas pipelines in the country as attested to by the flag-off of the Ajaokuta-Kaduna-Kano (AKK) Pipeline. He posited that an increased gas production, a stable gas pricing framework, which the government intends to achieve with the setting up of a gas pricing committee, is capable of attracting further investment into the oil and gas sector of the country.
Sylva further stated that the COVID-19 pandemic had triggered unprecedented dynamism in the world’s energy landscape, adding that Nigeria’s current transition from oil dependence to cleaner energy in gas offers a sustainable pathway to industrial and national development.
He added that the Petroleum Industry Bill (PIB) would provide a framework for sustained and increased petroleum industry activities in terms of developing gas for domestic market and increasing oil production under competitive terms to support the objective of a stronger non-oil economy for the benefit of all Nigerians.
The Minister noted that, through the National Gas Expansion Programme (NGEP), the declaration of 2020 as Year of Gas is now being pursued to deepen Gas penetration and avail Nigerians options for alternative fuels and cleaner environment while existing policies, legal and regulatory frameworks coupled with commercial instruments that hindered the development of the local gas sector are being reviewed.
Sylvia said, Federal Government is poised to reforming and implementing the promotion of a market structure in a manner that would ensure the utilization of gas infrastructure, assets and facilities on a common carrier and co-sharing basis.
The Minister hinted that strategies that will promote cost effective distribution of the various gas streams (LPG, LNG, and CNG) by marine, rail and road for achieving a most affordable, available, acceptable and accessible gas to Nigerians are being formulated. He added that substituting traditional white products with gas will cushion the effects of deregulation, foster human capital development through new investments, and create enormous job opportunities for Nigerians.
Enefaa Bob-Manuel
Deputy Director (Information)
Ministry of Petroleum Resources
