Nigeria wants an investment of $6 billion to supply about 2 billion standard cubic feet (SCF) of gas per day to generate 10,000 megawatts of electricity, in line with stakeholders within the gas sector. informing at the Gas Aggregation Company of Nigeria’s, GACN, Gas Buyers’ Forum in Abuja, yesterday, Senior commercial adviser, Upstream Gas of Shell Petroleum Development Company, SPDC, Mr. Emmanuel Anyaeto, however, declared that investors were willing to usher in the required investment however were hindered by a number of things.
He said, “the number of investments needed to get two billion SCF is about $6 billion —both plant, pipeline network and infrastructure. What people do not understand is that the way the gas business works, the problem is not with the investment. There are producers to do the investment. The challenges are if they produce, are the consumers that would pay? If the power sector can work in a way where the consumer pays, and from what it pays, every other person in the value change is paid, and then these things would work. According to him, gas producers in the country were currently being owed about $500 million, mainly by power companies, majorly owned by the Federal Government. He noted that the high debt owed the producers was another major disincentive to gas production and exploration.
Anyaeto noted that this was one of the reasons while power plants were starved of gas, irrespective of the fact that the country flared 800 million SCF of gas per day. He added that the N701 billion power intervention fund, which was earmarked to pay for electricity generation, was inadequate, as the duration of two years stipulated by the World Bank, was too short to allow the loan make any meaningful impact in the growth of the power sector. Also speaking, Chief Executive Officer of GACN, Mr. Morgan Okwoche, called on the Federal Government and the Central Bank of Nigeria, CBN, to include GACN in the disbursement of the N701 billion intervention fund, due to its strategic role in the sector.
He said, “Another thing with Nigerian gas is that they are scattered in different isolated fields, difficult to harness. It would never make economic benefits where there are allocated in small volumes.” The gas gathering facilities would make it so expensive that it would not be worth it. Unless we have a mobile arrangement, which is technology evolving, that you can go there. That is how naturally, we have the deposit.”
Latest posts by Emmanuel Cornelius (see all)
- ABUAD And Dubai Hospital Signs MoU To End Overseas Medical Tourism - January 16, 2018
- 2019 ELECTION: Buhari Still The Best Presidential Candidate For Nigeria – CACOL - January 16, 2018
- Malaria And Malnutrition Main Killer Of Children Under 5 Years - January 16, 2018