The Nation Newspaper Towards harnessing gas for growth
The persistent gas flaring in Nigeria, despite the regulations, is indeed a pressing issue that requires urgent attention. One significant aspect that worsens this problem is the country’s continued loss of revenue from gas, alongside dwindling revenue from oil, due to massive theft. Despite these challenges, there are key strategies to address the menace as well as beat other constraints in the sector to accelerate progress towards energy security and economic robustness, writes EKAETE BASSEY.
With a gas reserve of 209 TCF and unproven reserve of 600 TCF, there is a lot to accomplish with a yearly gas consumption of less than one trillion cubic feet yearly. In striving for low-cost gas pricing, he suggests that Nigeria needs to address several key areas, including investing in infrastructure, like pipelines and distribution networks, which, he says, are crucial to reducing transportation costs, implementing transparent regulations to foster competition and fair pricing in the gas value chain
“Capital is required for major investments in Natural Gas. For LPG, there is an issue with lack of awareness of the benefits and support from the government. There is a prevalent ignorance regarding LPG usage, particularly in rural areas. Secondly, the high cost of LPG in the country has forced many low-income earners to revert to traditional fuels,’’ he added.
In addition, he states that community engagement, policy reforms, and investment in research and development are crucial for reducing gas flaring, empowering local communities, raising awareness, and promoting community-led initiatives fosters ownership and responsibility, regulatory support and financial incentives, which will encourage companies to explore alternative uses for flared gas; as well as supporting R&D initiatives can lead to long-term solutions.
Besides, he adds that the gas market faces challenges in pricing, structure, and competition, consumer affordability and inaccessibility. He said: “This is to say we have more gas than oil, which is why the administration of President Bola Ahmed Tinubu, offered a 25 per cent gas utilisation investment allowance for equipment and plant for new and ongoing offshore projects.This is important to tap into the very huge gas reserves. This is the time to harness the huge gas opportunity in the country and we see the government’s interest in this direction, which is laudable.
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