The administration led by Tinubu intends to prioritize gas development as a crucial component of Nigeria's industrialization efforts. This announcement was made by Ms Olu Verheijen, the Special Adviser to the President on Energy, during the inauguration of the "Decade of Gas" secretariat in Abuja.
The "Decade of Gas" program, initiated by the Federal Government, aims to ensure that Nigeria maximizes the extraction of natural gas as a primary energy source for power generation and gas-based industries on a commercial basis.
Ms Olu Verheijen emphasized the significance of gas in Nigeria's energy landscape and expressed the president's commitment to fully utilizing gas resources. She highlighted the country's transition from being a major exporter of Liquefied Natural Gas (LNG) to a future where gas will play a pivotal role in the industrialization of Nigeria.
Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), stated that Nigeria is working towards becoming more reliant on gas for domestic consumption and export. The aim is to empower Nigeria in gas utilization, and the decision to establish a secretariat for the "Decade of Gas" program was made by the sponsor's group. The NMDPRA was chosen to host the secretariat due to its role as the Midstream regulator.
The project coordinator, Mr. Ed Ebong, emphasized that the success of the program depends on establishing the right policy framework. He mentioned that significant progress has been made, projects have been identified, and discussions with operators are ongoing, particularly regarding gas supply. Clearing outstanding debts owed by gas companies, amounting to around $1 billion, is considered a top priority to provide confidence to investors.
Ebong further explained the importance of building physical and virtual pipelines. Physical pipelines are the physical infrastructure to transport gas, while virtual pipelines involve the use of Compressed Natural Gas (CNG) operators to transport gas to areas where it is needed. Capacity building in the gas sector is also identified as a crucial aspect of the program.
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