DPR outlines five critical levers for robust development in Nigeria

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Mordi Chukwunonso Esther 

The Department of Petroleum Resources (DPR) has outlined five critical levers for gas development as Nigeria moves to leverage its abundant gas resources for national growth, diversification of the economy and to use gas as the fuel for  economic transformation.

A statement issued on Monday by Mr Paul Osu, Head, Public Affairs, DPR said Mr Sarki Auwalu, Director, DPR, made this known  while speaking at the Pre- Summit Conference of the Nigerian International Petroleum Summit (NIPS) on the principal theme: ‘The Decade of Gas – Towards a Gas-Powered Economy’  in Abuja.

The Pre-Summit Conference is in furtherance of the Federal Government initiative that declared January 1, 2021 to December 31, 2030 as “The Decade of Gas Development for Nigeria”

Auwalu said  the levers :availability, accessibility, affordability, and acceptability as well as deliverability were critical to utilizing Nigeria’s  proven gas reserves of 203 TCF for national development.

He said: “Whereas references have been made to the other elements in this discussion, right pricing of gas is requiring particular attention to ensure security of gas supply and security of credible gas demand.

“This is because upstream gas producers must be assured that they will receive fair and equitable returns for their investments whereas, the price must be such that the end-users are able to pay for gas offtake in a reliable and consistent manner.

“Accordingly, the most robust and sustainable pricing mechanism is that which ‘let the market speak’ in a way that all costs are reflective of prevailing market conditions and for which the economic dynamics of demand and

supply are allowed to interplay in an open, transparent, and free market environment.

“Thus, our drive as a nation should be early attainment to the Willing Buyer; Willing Seller market status. Any transitional pricing arrangements, today, must be structured to quickly give way for market-led pricing regime and conditions”

The DPR boss commended President Muhammadu Buhari and the Minister of State for Petroleum Resources, Chief Timipre Sylva, for their outstanding leadership in deepening gas utilization in Nigeria.

He said these efforts had culminated in the establishment of the National Gas Expansion Programme, National Gas Transportation Network Code and the National Gas Flare Commercialisation Programme.

Auwalu said it also include the ongoing construction of the  ELPS-II, OB3 and AKK pipelines as critical backbone gas infrastructure required to improve gas deliverability and availability.

He said the government was also working towards the expeditious passage of the Petroleum Industry Bill (PIB) which would enhance clarity in legislative, regulatory , fiscal, and administrative frameworks in the industry.

“This bill, when passed into law, will eliminate the uncertainties and bottlenecks associated with gas development in Nigeria and accelerate the growth of the Nigerian gas market to a fully  developed and matured status.

“Specifically, on gas matters, the PIB provides for the following: promotion of dedicated gas exploration and development, gas terms, fiscal separation of gas as a commodity.

“It will also enhance the domestic gas delivery obligation, tariffing structure & methodology, open access regimes and revised gas pricing framework, to mention but a few,” he added.

Auwalu said the DPR would continue to be an enabler and an opportunity provider in the Oil and Gas Industry.

He said: “Our focus remains the effective implementation of all policies and strategic programmes of government in an efficient manner that optimises the value of our petroleum resources for all stakeholders, all in overriding national interest.”

The official launch of THE DECADE OF GAS was declared by the President of Nigeria, His Excellency Muhammadu Buhari GCFR, President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, whilst in attendance on Monday, 29th March 2021 at the hybrid event.

 The event discussed the road map towards a gas powered economy by 2030 was organised by the Ministry of Petroleum Resources and sponsored by Nigeria LNG Limited (NLNG).

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