Nigeria:FG to prioritise investments in gas pipelines for local consumption

  • 27 August 2020 / News / 74 / ABI 1


Nigeria:FG to prioritise investments in gas pipelines for local consumption

• Considers strategies for affordability, transportation
The Minister of State for Petroleum Resources, Timipre Sylva, has said a significant network of additional gas pipelines remains a priority for the government as it thinks of strategies to make gas available and affordable for power generation and transportation.
   
According to him, 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.

Already, he noted that efforts are underway to stabilise the price of gas in the country, especially by local producers.The Minister stated this at a webinar organized by the Society of Petroleum Engineers (SPE), tagged, “Economic Development and Environmental Stewardship: Opportunities and Challenges for the Energy Industry.”
   
He said the flag-off of the construction of the AKK pipelines is the first step in this direction, adding that the growth of the Nigerian economy is hinged on constant power supply, hence, collaboration with stakeholders would aid the conversion of gas being flared to energy for Nigerians at affordable rates.
   
“Therefore a significant network of additional gas pipelines is a priority. The development of an optimal framework for electricity generation based on natural gas would create a strong basis for providing electricity to all Nigerians,” he said.
 
He noted that the Covid-19 pandemic has made indigenous participation in the oil and gas value chain an imperative, adding that with the pandemic, encouragement of local industry participation is now an element of national strategy and sustainability.

He said the proposed Petroleum Industry Bill (PIB), would encourage further participation of Nigerians in various oil and gas activities, and with the declaration of 2020 as a year of gas now being pursued through the national gas expansion programme to deepen penetration and avail Nigerians options for alternative fuels and a cleaner environment.
   
He said the current challenges in the oil and gas industry is a wakeup call for Nigeria to increase efforts and reduce its dependence on oil, maintaining that Nigeria must rejig its petroleum industry and energy framework to chart a new course.
Speaking, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari, charged industry operators to think of how best to sustain the sector, maintaining that deepening gas penetration is the way to go.
   
He added that plans are on-going to ensure a full scale rehabilitation of the refineries that are owned by the national oil company by encouraging every participant to establish refineries in Nigeria.
   
“What Covid-19 has thrown at us is that we must think of the sustainability of the oil and gas industry. The industry must focus on people, partnership, profits and ultimately prosperity. There is a profound opportunity that Covid-19 has brought to us. We have seen how collaborations work and how automation has helped processes to be easy and how we can reduce operational costs,” he said.




source: guardian.ng

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