“PIA is Not Enough” to Drive Investment, Growth in Nigerian Oil and Gas Industry – Manager Downstream Gas, Tetracore Energy
The Manager, Downstream Gas & Virtual Pipeline Solution, Tetracore Energy, Emmanuel Udoh, has said that the enactment of the Petroleum Industry Act (PIA) is not enough to drive investment and growth in the Nigerian Oil and Gas industry. He stressed that the PIA must be empowered with action to deliver the needed growth for the industry as the market today requires more actors to unlock our vast Natural Gas potentials.
The PIA provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities, and related matters.
It aims to open up the Nigerian Oil and Gas industry to investment, strengthen industry governance and regulation to expand, grow and maximize value capture for Nigeria and its citizens.
Udoh said that there must be an actionable regulation for business enablement to drive investments and growth in the industry.
He stated this in an interview with Majorwaves on the margins of the 2023 Nigeria International Energy Summit, which held in Abuja.
“PIA is not enough. There is work that must be done. For instance, we don’t really have clarity around PIA stands on Non-Associated Gas (NAG) Asset development. And that’s also creating some sort of concerns within the industry players,” Udoh said.
In 2021, President Muhammadu Buhari launched the Decade of Gas initiative of the Federal Government, which intends to diversify the economy and make Nigeria a Gas-powered economy by 2030. The country has also adopted Gas as its transition fuel. Udoh emphasized on the need for the government to formulate policies that will enable homogenous innovation and further transfer of technology from the International Oil Companies (IOCs) operating in the country, to indigenous players.
According to him, this will help to reduce reliance on imported technologies, as well as prevent capital flight.
“Starting off on the Decade of Gas, have we done well? Well, that’s relative. But can we do more? Yes! The potential is there. I mean, we have the resources, we have the human capacity; and the only challenge will be around technology and funding.
“In terms of technology, I think there has to be some sort of policies put in place to enable homogenous innovative technologies inventions and further transfer of already existing technology from most of the IOCs to the local players – that’s the indigenous players; so that we begin to reduce the level of our offshore reliance on technology. Of course, when that happens, there’s no capital flight anymore, more capital would be retained in-country which of course you know has other multiplier effects.
“So, localizing the technology side of things is very critical and that’s why we have begun to see local companies – indigenous companies go into building highly robust Gas solutions. We have companies that are already assembling Gas leak detection systems, Gas skids, PRMS – that’s Pressure Reducing and Metering Station, to support some of the Gas industrialization initiatives that we have in the domestic market today.
“We have started off well and we believe that we can do more. And that’s why this sort of engagement is very important,” he said.
Tetracore is a ‘one stop shop’ integrated energy solutions provider with a robust and increasing gas and power delivery portfolio across the energy landscape in Nigeria, providing Natural Gas and Power to various off takers across the country. Udoh informed that the company is committed to leading the energy transition in Nigeria and Africa as well, adding that decarbonization is a key part of Tetracore’s strategic imperatives.
“We have diversified and refocus our strategy to play across the entire energy value chain from downstream, even the midstream and also the upstream as well as the renewables and Power sector of the economy. Because you can’t talk energy without addressing the broad power issues that we have in Nigeria and Africa as a whole. We are very focused, and we are very determined to unlock a bit more volumes of Gas into the domestic market; and to deliver Power to the domestic market today,” he added.
Udoh said as a company, clean energy is key for Tetracore, adding that the company currently supports several industries in terms of delivering Gas to them, which helps them to drive efficiency and reduce their carbon footprint.
