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Nigeria’s gas infrastructure development’ll drive diversification — Chevron

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By Michael Eboh

The Chairman/Managing Director of Chevron Nigeria Limited (CNL), Mr. Jeff Ewing, has called for the development of Nigeria’s gas infrastructure, stating that it would help in the drive for the diversification of the economy and boost the country’s export revenue.

Specifically, Ewing, who was represented by Director, Downstream Gas, Mr. Sanjay Narasimhalu, at the 11th edition of the Nigerian Gas Association Conference and Exhibition, stated that the enhancement of gas handling infrastructure in Nigeria will help boost domestic gas utilisation and development of additional regional/export gas markets.

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He added: “Gas infrastructure development will support gas to power initiatives, especially as the power sector is undeniably one area that could drive sustained diversification in the Nigerian economy, and strong vital gas infrastructure and reliable operations is a great enabler to this transformation. Unfortunately, the overall gas-to-power value chain is highly integrated, but currently suboptimal and investor confidence remains low.”

Ewing further stated that the opportunities for investment in the gas sector in Nigeria are enormous and include transitioning Nigeria from an oil-based economy to a more integrated oil and gas economy, while also ending routine gas flaring.

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Other opportunities he noted include the deliberate exploration for non-associated gas to support the Nigeria Gas Master Plan, with a focus on high liquid yield non-associated gas resources to optimise the gas development project economics and the growth of new industries made possible from the abundant resources and competitively priced gas supply.

However, he advised that to enable a viable gas industry in Nigeria, efforts should be geared towards supporting and enabling ‘willing buyer – willing seller’ gas pricing model; privatization of the various value chain sectors and the use industry standards, technology/instrumentation and processes to monitor and manage gas flows and gas quality.

He also said it was crucial to develop and communicate strategy for legacy payments for gas sold to the domestic power market, while efforts should also trend towards driving initiatives in effective utilisation of the nation’s abundant gas for achieving the goal of energy security.

He stressed that it is crucial to enact fiscal terms that encourage the development of small to mid-sized assets/reservoirs as well as non-associated gas fields, as well as the establishment of a competitive deepwater gas fiscal framework.

Ewing disclosed that the Chevron Nigeria had contributed immensely to the Federal Government’s gas master plan through the various gas projects it has embarked on, adding that the company is the highest contributor of high quality gas to the domestic market in Nigeria since 2015.

He said: “Through investments in gathering and processing of associated gas, routine flaring has been reduced by over 90 per cent from 2008 to 2017 in CNL’s operations. We appreciate the talents in the industry, the workforce that make things happen. Without a committed and well-trained workforce, the achievements in the industry will not be possible.

“Chevron has a long commitment to Nigeria.  CNL is optimistic about the future of oil and gas business in Nigeria. We have been making significant investments in the country for over 50 years and expect to do so for many more years to come.”

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