Stakeholders in the gas sector have urged the Nigerian National Petroleum Corporation (NNPC) to accelerate the rate of construction of gas pipeline networks in the country in order for the power sector to realise its full potential.
They emphasised the importance of the country having reliable and sustainable gas infrastructure network if the privatisation of the power sector must succeed.
The gas industry operators, who spoke at the annual general meeting of the Nigerian Gas Association in Lagos, expressed the hope that the privatisation exercise of the power sector would usher in new lease of live and engender confidence in gas and power business in the country.
The stakeholders also said that the unsettled huge debt profile of some of the government agencies such as the defunct Power Holding Company of Nigeria (PHCN) has induced fears in the mind of gas producers, hence their refusal to make further investments in the sector.
Victor Okoronkwo, general manager, gas, Shell Petroleum Development Company (SPDC), said bridging the gap between stranded consumers of gas in the western Niger Delta and stranded gas suppliers in the eastern part through a dependable pipeline network has become expedient if we must meet the power needs of the country.
He said the Nigerian Gas Master plan has done a great job but there are still some challenges that must be resolved in order to move the industry forward.
According to him, gas suppliers are scared that they may not be paid if they make further investments in the sector and urged the government to intervene on the issue of debts the defunct PHCN owes gas producers.
He said that the current gas structure should be reviewed to meet global standard.
Chima Ibeneche, former managing director of Nigeria Liquefied Natural Limited, said that every molecule of gas should be monetised for the benefits of the economy, adding the need for right pricing across the value chain of the gas sector.
In her contribution, Audrey Jeo-Ezigbo, managing director, Falcon Petroleum Limited, expressed the view that there should be concerted efforts by all stakeholders to deliver the critical infrastructure in the gas sector if the country must add value or monetise its gas resources.
She said that while it is expedient to build infrastructure that is critical, the stakeholders should give serious consideration to security issues, saying that the pipelines must be given adequate security so as to prevent vandals from vandalising them.
