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Tag: Gas sector

  • Why we must correct anomalies in gas sector – Gbajabiamila

    Why we must correct anomalies in gas sector – Gbajabiamila

    The Speaker of the House of Representatives, Rep. Femi Gbajabiamila, on Monday said Nigeria’s gas sector has the potential to create millions of jobs, bring about industrialisation as well as generate more revenue for the government.
    For these reasons, Gbajabiamila said, the country must do all it could to correct all anomalies in the sector.
    Declaring open a public hearing on the ‘Inclusion of Gas Terms in Production Sharing Contracts (PSCs) organized by the Joint House Committee on Gas Resources, Petroleum Resources (upstream) and Petroleum Resources (downstream) on Tuesday at the National Assembly, the Speaker said he believed the panel would do justice to the matter.
    “For too long, Nigeria’s natural gas resources have existed almost as an afterthought both as a matter of policymaking and as a focus of investment and exploration. Given the potential of natural gas for industrialisation, job creation and revenue generation for the government, this is a significant error that ought now to be corrected with all urgency.
    “It falls to this Joint Committee of the House of Representatives to articulate the way forward and to do so, taking into account the concerns of all the stakeholders and the expectations of the Nigerian people.
    “The Public Hearing we have gathered for today is an important part of the Joint Committee’s assignment. It is also an opportunity for stakeholders from across the oil and gas sector and the country to present information, and contribute ideas that will help the Joint Committee arrive at the proper conclusions and propose effective solutions.
    “This Public Hearing ought to have happened and the Joint Committee’s assignment should have been completed long before now. However, we have had to adjust plans and make modifications to accommodate the new realities imposed due to the emergence of the Covid-19 pandemic.
    “Nonetheless I am certain that the assignment will shortly be completed, and a report presented to the House for consideration and adoption,” he said.
    Earlier in an opening remark, the lead chairman of the Joint Committee, Rep. Nicholas Mutu, who chairs the Committee on Gas Resources, said the public hearing was an opportunity to offer practical suggestions for a structured bouquet of incentives that would attract investors to the sector and provide access to finance and profit-sharing.
    He said: “Nigeria’s enormous gas reserves demand a robust public policy to drive gas development and boost the Nigerian economy, create jobs, stimulate incomes for gas value-chain resources and earn revenue for the government.”
    On his part, one of the co-chairmen of the Joint Committee, Rep. Abdullahi Mahmud Gaya, who heads the Committee on Petroleum (downstream), thanked the Speaker for attending the event and promised that the panel would do a diligent job.
  • National Oil & Gas Centre will boost efficiency in gas sector- DPR

    National Oil & Gas Centre will boost efficiency in gas sector- DPR

    The Department of Petroleum Resources has said that its National Oil and Gas Excellence Centre would address critical challenges in the oil and gas sector and also create a more stable and sustainable business environment for operators.

    The project which is expected to be inaugurated by President Muhammadu Buhari later this month would drive safety, value and cost efficiency, which are critical for oil and gas industry stability, growth and sustainability.

    The Director of DPR, Sarki Auwalu said in a statement on Wednesday that the infrastructure would provide the Nigerian petroleum industry the elements for competitive advantage in a changing global energy landscape.

    He said, “The integrated centre will also entrench Nigeria’s status as a regional leader and position the nation for significant global impact in the provision of value-added services and breakthrough solutions for the industry in years and decades to come.”

    According to the Director, NOGEC is expected to house the various flagship centres to comprehensively cover key areas of the industry.

    The centres are Search, Rescue and Surveillance; Command and Control Centre; National improved Oil Recovery Centre; Oil and Gas Dispute Resolution Centre; Oil and Gas Competence Development Centre; and Integrated Data Mining and Analytics Centre.

    Mr. Auwalu disclosed that the agency would partner with operators and technology innovators in research and development efforts to achieve projected objectives, adding that it would collaborate with similar international oil and gas regulators in sharing lessons learnt and operational best practices.

    He said the Oil and Gas Dispute Resolution Centre is expected to offer arbitration, mediation and conciliation services to the Industry.

    Auwalu noted that the centre would leverage industry technical experts, Alternative Dispute Resolution Practitioners and resources of the National Data Repository to provide fair and balanced resolutions of industry-related disputes from an informed position.

  • NSE makes case for increased investment in gas to aid manufacturing

    NSE makes case for increased investment in gas to aid manufacturing

    The Nigerian Society of Engineers (NSE) says there is need for increased investment in the Gas sector as it plays a key role in enabling diversification and growth of Nigerian economy.

    Mr Sunny Ejeje, Chairman, NSE Apapa Branch, told the News Agency of Nigeria (NAN) in Lagos that there were lots of benefits that Nigeria would get from diversification to gas, especially in terms of cost of production in the manufacturing sector.

    According to him, it will also improve the business environment, power supply and ultimately improve pricing.

    Ejeje said that the society’s interest on the need for the country to diversify to a gas-driven economy necessitated the topic for the NSE’s 2020 Public Lecture and Induction of new members.

    He said the theme was: “High Cost of Energy in Industrial Sector – Exploring the Gas Solution’’.

    Also, Mr Festus Omotoyinbo, Head of Technical, Flour Mills of Nigeria, noted that more investors were needed in the gas sector.

    “We need more investors in gas to ensure that it is readily available for the manufacturing sector in Nigeria.

    “We are having issues with pipeline gas as well, even though it’s there but sometime, the pressure goes down and it affects the factory.

    “Also, when you are running big turbines that are required to run at a higher pressure, when the pressure drops, then you have problem, you have to seek alternative.

    “So we are having a challenge with the fact that the gas is there but not fully explored to meet the demand of the manufacturer.

    “Hence, for any business to grow in Nigeria, there is a potential need for the government to look inward and see what they can do in tapping deep dive into the issue of gas and ensure it is explored to the benefit of the manufacturing sector.’’

    Omotoyinbo explained that power in Nigeria as it affected the manufacturing sector was different from individual and private lives.

    He said that for individual private lives, one could afford to do whatever he wanted with generators but it is a different ball game when it concerned the business environment.

    “This is because you have the overheads, you have to make a returns to the shareholders, you have salaries to pay and you have finance to settle with banks.

    “In other words, you must have a reliable and sustainable power to be able to run your business and grow and make profits.

    “In Nigeria today, we are suffering because of the poor supply from the grid and so, it affects us in the manufacturing sector,’’ he said.

    “We are looking at what options do we have. That means we have to proactively and practically look at what we could do as engineers to provide a solution for the manufacturing sector to be able to run effectively and make profits in every areas of their operation.

    “The Nigerian environment is very competitive. Therefore, for you to be able to beat your competitors, you must do something different in terms of operating efficiently your plans,’’ Omotoyinbo said.

    According to him, efficient operations means you look at every area of your process and see how you can reduce your costs.

    “Now power generation is capital intensive. It involves a lot of capital; you have to invest, when you invest, investments alone cannot give you what you want.’’

    “ So, what we are saying in essence is that the gas deposit is there. What can government do to exploit and make it available for the manufacturing sector to be able to run their business and make enough profits,’’ he said. (NAN)