By Ediri Ejoh
SOCIETY of Petroleum Engineers (SPE), has called for more incentives ranging from security for return of investment and policy consistency, as the catalyst for realizing the fortune in Nigeria’s gas industry.
SPE stated this at the briefing to announce the Oloibiri Lecture Series & Energy Forum (OLEF 2017), slated for March 02, 2017.
Speaking at the briefing, Nigeria Council Chairman, SPE, Dr. Saka Matemilola, stated that the country is running at a loss owing to low incentives in the gas business.
According to him, “for the infrastructure, you need to know how much gas is available.
“It is also important we have companies that will recoup from the sector; we only have gas here, so they can just pipe it down through that same infrastructure. But it has to make economic sense.
“The problem is that, for pricing the people who are willing to invest are not encouraged by the economy.”
He lamented that the progress on domestic gas utilisation has been slow. The reason for this, he noted is not the lack of market. The challenges range from lack of adequate domestic gas infrastructure and gas pricing mechanism, to the extent that some companies consider it cheaper to burn associated gas, rather than to sell.
“Most of the electric generating plants built, which are meant to be powered by gas, are unable to get gas for one reason or the other. This is not to say there is no progress made in recent times but a lot still needs to be done. Opportunities abound for using gas for home consumption, fertilizer production and powering of locomotives,” he said.