The Federal Government of Nigeria made a suggestion yesterday about a new rate that would boost availability amidst the country's cooking gas shortage.There are currently signs that projected multibillion dollar gas-related ventures are having stock market difficulties.
Earlier this month, Nigeria LNG Limited revealed that its oil production output had decreased by about fifty percent.
Only roughly 23% of deepwater assets were productive in 2021, according to a report published earlier this month by the Nigerian Extractive Industries Transparency Initiative (NEITI). This is despite the fact that international oil companies (IOCs) are anticipating improved financial conditions to expand their deepwater operations.
Speaking at the sixth Value Chain Annual Lecture, Vice President Kashim Shettima stated that the government would take into account the appropriate tariff that would allow the nation to transition to non-associated gas exploitation.
Nigeria boasts a gas reservoir of almost 209 trillion standard cubic feet, but the country's recent discoveries were made by accident by people looking for crude oil.
In the presence of Sodiq Wanka, Special Adviser to the President on Energy and Power Infrastructure, the Vice President stated that the nation ranks ninth in the world for proven reserves and has over 200 trillion cubic feet of undeveloped gas potential.
"It is impossible to overstate the importance of utilizing the country's gas reserves," he remarked. "Gas not only provides 80% of the country's power generation currently, but it is predicted to overtake all other power generation sources by the end of this decade."
"Gas is an essential transition fuel for achieving the nation's aggressive 2060 net-zero climate targets. There are numerous different gas-based and gas-powered industries, ranging from consumer goods and cement to methanol and fertilizer. The Federation's financial situation can be significantly improved by a thriving economy based on the exploitation of gas reserves.
He said that the numerous factories and power plants that have sprung up around the Escravos-Lagos-Pipeline System and its various components are proof of the necessity of gas, noting that critical gas transport infrastructure, processing facilities, and other midstream infrastructure remain sacrosanct.
"The government's commitment to ensuring the appropriate tariffs to encourage the exploitation of non-associated gas remains strong," he continued in reference to upstream gas. Additionally, the government will not relent in its pursuit of a comprehensive strategy to address the problem of petroleum asset security, from bolstering the Host Communities Trust Fund's operationalization to increasing community involvement, monitoring, and prosecuting suspected vandals.