The Nation Newspaper

Tag: Gas

  • Gas sector needs robust policy framework, says DPR

    The Department of Petroleum Resources (DPR) has said the gas sector needs robust and appropriate policy framework to enable the country harness the opportunities and benefits in its abundant gas resource.

    Its Deputy Director, Gas Monitoring and Regulation, Mr. Antigha Ekaluo who spoke in Lagos yesterday at the 2015 Business Forum and Annual General Meeting of the Nigeria Gas Association (NGA) said only a good policy could move the sector forward . The theme of this year’s Business Forum is Harnessing and monetising the potential of stranded gas fields.

    Ekaluo said effective gas sector policy will give Nigeria the ability to harness opportunities in the sector and will afford the country the opportunity to enjoy maximum value from its stranded gas resources. Nigeria, he said, is endowed with abundant gas resources and the sector holds huge potentials for unprecedented growth.

    He said: “The existing legal and regulatory framework, written primarily for oil does not provide robust technical and commercial framework for gas. There is therefore the need to pass the Petroleum Industry Bill (PIB) into law, which will underpin the ongoing sector reforms.

    The gas sector policies will provide Nigeria with the opportunity to harness and get maximum value from its stranded gas resources.”

    He said effective gas sector development remains a strong catalyst for growth of the economy. Besides, such growth will also have a multiplier effect on the Nigerian economy, he added.

    In harnessing and monetising stranded gas, Ekaluo said there is need to adopt new technologies, adding that government should also deepen market penetration, sustain demand growth and also vigorously pursue the completion of gas gathering and utilisation projects. He said there is urgent need to address gaps in regulatory and commercial frameworks across the gas value chain.

    The Chairman, Society of Petroleum Engineering (SPE), Nigeria Council, Mr. Emeka Ene said to achieve effective  strategy for monetising stranded gas, there is need to identify and secure country’s closest markets and develop an integrated flare-out model.

  • ‘Meeting domestic gas demand difficult’

    Despite having proven environmental and cost advantages over other fossil fuels, making gas available to service domestic requirements will be a key challenge in the short term, it was learnt.

    The Vice-President and Head, Energy and Natural Resources, FBN Capital, Rolake Akinkugbe, said going by gas outlook for Nigeria, domestic gas requirement will reach about eight billion standard cubic feet per day (bscf/d) by 2020 from the 2.2bscf/d required now.

    She said implication challenges were different for producers and consumers. Offtake security challenges, she noted, makes gas production less attractive for producers at upstream entry point, while serious deficit in distribution infrastructure poses a major challenge to consumers. Besides, stated that the cost of developing and extracting, transporting and distributing gas is tremendous and the gas regulation and policy don’t adequately encourage investment in the sector.

    Price distortions, Akinkugbe said, undermine gas products advantage over oil, particularly in the downstream. Gas producers want competitively priced gas-to-power pricing because consumers naturally want cheap fuel sources and policy options that favour more informed switch to gas-driven technologies are limited.

    She said if the government could get its gas utilisation and monetisation drive right, the nation can still make huge proceeds from gas because Asia’s top three customers, China, India and Japan require 14.4 trillion cubic feet in 2020, which still provides a market for many of Africa’s exporters including Nigeria.

    The advantage of Asian consuming countries buying from Nigeria and other producer countries in Africa is boosted by the fact that exporting liquefied natural gas (LNG) to Asia from United States (U.S) is more expensive than from Africa, Europe and Australia.

    She stated that in 2012, the U.S did not import any LNG from Nigeria, though imports resumed in 2013 but noted that on the continental level, gas is unlikely to compete with petrol in the short-to-medium term despite cost and environmental benefits.

    Earlier, she said if the infrastructure bottlenecks that limit producers and consumers’ options should be addressed, the Federal Government would encourage the investment of at least $20 billion in the sector to tackle the infrastructure deficit.

  • ‘Technical development key to oil, gas growth’

    Players in the oil and gas sector have been urged to make technical capacity development as a panacea for their growth.

    Acting Principal/Chief Executive, Petroleum Training Institute (PTI), Effurun in Delta State, Mr. Jacob Avuakporeta Orukele, gave the advice at an oil/gas and allied companies learning managers workshop at the institute.

    In his welcome address on the occasion, he said allied companies  should be preparing their organisations for the challenges ahead.

    At the event, he sought for collaboration in human capital development, staff exchange programme, students industrial attachment and the support of stakeholders.

    In a lecture on, Gas development:  On-shore and off-shore, A level playing field of the future in the Industry,   Dr. Olimma Ufuoma Allison harped on the essentials of gas formation, noting the natural processes in the evolution of a viable oil and gas wells and reservoirs. She listed the global distribution of gas resources and disclosed that Nigeria has the largest gas reservoir in Africa and the ninth in terms of resource availability in the world.

    She underscored the enormous cost of infrastructure for gas development and the government’s effort in addressing such challenges. She stressed the success of the Joint Venture between NLNG and foreign companies in exploitation of gas in Nigeria.

    She reiterated that the investment potential in the industry was a consequence of the rising demand for gas both locally and globally and cited the various local and international companies involved in successful gas business.

    She noted the imperativeness of reduction of gas flaring to meet international regulations as regard to gas flaring actually gave rise to the investment opportunities to comply to national legislative  requirement and international regulatory laws. She reiterated the strategies embarked upon by the government in the nation’s Gas Master Plan to attract investments in gas sector of the economy.

    She recounted the issues of threat to security, inherent risk and low investment in gas infrastructure as the major challenges in gas development projects in the country.

  • Towards adequate gas supply

    Towards adequate gas supply

     Stakeholders in the global energy industry believe that natural gas is the fuel of the future. Unlike other fossil fuels, gas is environment-friendly and affordable. Nigeria is blessed with huge deposits of natural gas estimated at over 187 trillion cubic feet, yet it lacks adequate supply to fuel its thermal power plants. Gas is exported  but the Federal Government has introduced the gas revolution policy to boost domestic supply. Seven Energy is leading other indigenous firms with over $1 billion investment in the gas sector, writes EMEKA UGWUANYI.

    The pace of economic development in Nigeria continues to be constrained by lack of investment in the country’s power infrastructure. This is partly responsible for the unreliable electricity supply situation.

    Nigeria has power generating stations that have combined installed capacity of about 24,000 megawatts (Mw) but struggles to attain 4,000Mw output. The reason for this, according to generation companies (Gencos), is a shortfall in gas supply.

    To boost gas supply to power plants, industrial and commercial concerns, the Federal Government introduced the Gas Revolution programme aimed at encouraging oil firms, especially indigenous players, to step up gas supply for domestic use. The domestic supply drive has been boosted by the acquisition of Shell’s divested oil blocks by indigenous consortia and marginal fields’ owners. When the price of crude oil fell by over 50 per cent from an average of $100 per barrel mid-last year to less than $50 per barrel in the first quarter of of this year, the need to focus more attention on gas production became imperative.

    Some indigenous companies, such as Seplat Petroleum Development Company Plc, Midwestern Oil & Gas Company Limited Waltersmith Petroman Oil Limited, Niger Delta Exploration & Production Plc (NDEP) and Frontier Oil Limited, developed or resuscitated their assets and are making  progress in gas production.

    However, what stands Seven Energy out is that while other companies produced associated gas from already developed assets divested by the multinational firms, the company financed and produced non-associated gas assets. Associated gas is gas found in the process of finding crude oil. It mixes with crude oil and is separated during the processing of crude oil. In the past, such gas is flared because there was no infrastructure to process, store and utilise it. But due to the global fight against environmental pollution, oil firms are compelled to find ways to utilise it but in non-associated gas, the asset or field’s reserve is wholly gas or sometimes with little oil as is the case of Frontier’s oil field.

    Besides, Seven Energy has interests in some of these oil assets owned by local firms. For instance, it has indirect interests in oil mining leases (OMLs) 4, 38 and 41 through a Strategic Alliance Agreement (SAA) with the Nigerian Petroleum Development Company (NPDC), an arm of the Nigerian National Petroleum Corporation (NNPC), which holds 55 per cent interests in the oil blocks. It is also a major financier and technical partner to Frontier Oil Limited, with regard to the Uquo Marginal Field in the OML 13 area. The field was awarded as an oil field, but it eventually turned out to be a gas field.

    It produces 200 million standard cubic feet per day (mmscf/d).

    Seven Energy has championed the exploration and production of natural gas, and more critically, its commercialisation through the provision of processing and distribution  infrastructure. It has invested over $1 billion in gas production in the Southeast region of the Niger Delta in the last five years. The infrastructure provision enabled end-users to access gas in the eastern axis. It also helped to meet the growing energy needs of the industrial sector and also provide stability in the emerging electricity market.

    Its Chief Executive Officer , Phillip Ihenacho,  told The Nation that delivering a cost-effective and reliable gas supply was critical to sustainable power supply to the national grid in order to meet the government’s reform objectives and facilitate industrial development. He said he was glad his company is contributing to the actualisation of these objectives. “I am delighted that our ability to deliver an indigenous gas solution from end to end is now being recognised by a broad range of industrial and power sector customers,” he said.

    He said last year, former President Goodluck Jonathan commissioned the Uquo Gas Processing facility owned by the firm. The facility has begun gas supply to the 190 Mw Ibom Power Plant in Akwa Ibom State.

    “Today, by deploying a combination of fixed-price gas sales and take-or-pay contracts, the facility supplies gas to five industrial customers, which includes three Independent Power Plants (IPPs) in Southsouth/Southeast Nigeria as well as industrial off-takers (such as ) Ibom Power since the start of 2014, Unicem late  last year, Calabar NIPP, Alaoji Power and Notore Chemicals in early 2015.

    “By this feat, Seven Energy is supplying power stations and industrial customers gas that accounts for 1,700 Mw of electricity, about one third of Nigeria’s total power output. This accomplishment has been recognised across Africa as the company recently clinched indigenous firm of the year award in the gas category conferred by the Petroleum Africa magazine,” he said.

    He after leading the supply of gas to the domestic power market, its foray to industrial sector is quite instructive. He said the case of Notore Chemicals demonstrates its commitment to the development of the industrial sector. The commercial delivery of gas to Notore, a leading fertiliser and agro-allied company in Onne, Rivers State is being executed through Accugas, a 100 per cent subsidiary of  Seven Energy. Gas is being supplied at a rate of 25 mmcf/d as part of the feedstock to the fertiliser plant. By this supply arrangement, Seven Energy has enabled the fertiliser plant to improve its operational efficiency and enhance the plant’s output. Natural gas is the core input into the production of fertiliser. “Through the supply of our processed gas, we are providing a new source of feedstock to meet the company’s increasing requirements, whilst directly enabling the production of fertiliser that Nigeria’s agriculture sector desperately needs to grow,” Ihenacho said.

    The Managing Director, Accugas, Stephen Tierney, said it is a manifestation of the firm’s commitment to the industrial development of the nation that it was supplying gas to the fertiliser firm.

    He said: “This milestone represents another significant step for Accugas in our effort to increase domestic supply and utilisation of gas for the good of the Nigerian people and its economy. By providing a clean, dependable, quality source of gas supply to the Notore plant, and doing so via an integrated end-to-end solution, we are demonstrating our clear commitment and execution performance toward enhancing domestic gas consumption for broader industrialisation.”

    Last year, Seven Energy completed the acquisition and integration of the East Horizon Gas Company into its core group and also reached an agreement with Niger Delta Power Holding Company to construct, and take ownership of a further section of pipeline between Oron and Creek Town, thus expanding its geographic reach over this industrialised area of Nigeria.

    In addition, Seven Energy reached agreement with Nigerian Gas Company (NGC) to transport gas from Ikot Abasi through its pipelines to customers in the Port Harcourt region. By this, the company has the capacity to transport gas to customers covering from Port Harcourt to Calabar.

    Last year too, Seven Energy completed two wells, Uquo 7 and 8, which are producing gas at a combined rate of about 85 mmscf/d with estimated potential of some 140 mmscf/d. This year, the company drilled an exploration well, Uquo NE-1, which encountered gas and oil reservoirs, achieving results ahead of expectations.

    With limited competition, Seven Energy’s quest for expanding its gas processing and transportation infrastructure positions them to reach a larger distribution area and demand for their own and third party gas. Having demonstrated ability to deliver gas to high specifications with consistent reliability, the company is attracting new customers.

    Beyond its forays in gas,  the company, through its subsidiary company Universal Energy Resources Limited, recently announced the commencement of crude oil production from the Stubb Creek Field, in Akwa Ibom State, following approval to embark on delivery of oil through ExxonMobil’s Qua Iboe Terminal. Its interest in the Stubb Creek field is held through a 62.5 per cent interest in the operator, Universal Energy Resources Limited.

    Stubb Creek’s development was conceived and led by the Seven Energy’s team, resulting in production start-up in February this year at an initial gross rate of 2,000 barrels of oil per day (bpd) with plans to increase the processing capacity to 8,000 bpd. The company also constructed a 23-km oil pipeline from the field to the Qua Iboe Terminal to enable evacuation and export of the crude produced.

    The Stubb Creek Field lies in OML 14 located in Akwa Ibom State. It was classified as a marginal field in 2002, and subsequently transferred to Universal Energy, a subsidiary of Seven Energy, in 2004.  The field has been developed in a joint venture with Sinopec International Petroleum Exploration & Production Company (Nigeria) Limited.

    “Production at Stubb Creek is also important because it marks the attainment of first oil at one of the marginal fields allocated to indigenous companies. This realises the original intention of the marginal field round to enable domestic companies to bring smaller, unutilised fields on stream, enhancing domestic ownership, national production, and also revenue,” Iheanacho said.

    To secure its operations and activities in the Niger Delta, it engaged specialist security consultants to examine and manage transport routes and any other identified hazards to mitigate potential risks and security issues. It also engaged host community representatives and affected persons along the right of way (RoW) of the Uquo to Oron gas pipeline to ensure compliance with community expectations and international best practices. The firm has interest in OPL 905 in Anambra Basin with gas processing facility and pipeline network of 260 km, which has distribution capacity of 600 mmscf/d.

  • EU to reduce greenhouse gas emissions by 40%

    EU to reduce greenhouse gas emissions by 40%

    The  European Union (EU)  promised  to reduce greenhouse gas emissions by 40 per cent by 2030.

    The Ambassador/ Head of the EU Delegation to Nigeria, Michel Arrion, made the declaration at the European Climate Change Diplomacy Day  in Abuja yesterday.

    He said the EU is not viewing climate change as just a problem for Europe but a global challenge.

    He said: “ The actions that different countries can take to tackle the problem, and how to increase public awareness. As representatives of different European countries present in Nigeria, this is also a chance for us to consider how Nigeria can respond to that threat.

    “ The EU has itself already made a strong commitment, promising that by 2030 we will reduce greenhouse gas emissions by at least 40 per cent based on 1990 levels.

    “There is wide spread international agreement that action needs to be taken to limit the ruse in global temperatures to less than two degrees. “At its simplest Africa has many areas that are low-lying close to the sea – many of which you know are in Nigeria.  These are areas that over decades will be certainly adversely affected.  So as climate change slowly takes effect with a steady rise in sea levels this is certainly a problem that is going to affect Africa and Nigeria.

    “In sum, if we recognise that we have a problem; we know it is going to affect us all; we know that we can grow and cut greenhouse emissions; then with this knowledge we know we all need to act.  And today is a day to encourage that action; and to remind us that we have the tools to act.”

  • Smile deploys broadband services to oil, gas confab

    Smile Communications a broadband service provider has been commended for providing super-fast Wireless Fidelity (WiFi) internet service to participants at the just concluded Nigeria Oil and Gas Conference in Abuja.

    The speed and reliability of the WiFi internet service provided by the firm excited both guests and organisers of the conference, which earned the broadband company a lot of commendation. The company was commended and praised for providing the conference with very reliable and super-fast internet services.

    The annual Nigeria Oil and Gas Conference and Exhibition, under the auspices of the Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC), took place between March 16 and 19.

    Conference organisers expressed delight that the partnership with Smile helped to ensure that most of the exhibitors and visitors to the conference experienced uninterrupted internet services.

    Speaking on the firm’s participation at the annual conference, its Chief Marketing Officer, Alero Ladipo said the firm’s  involvement in this year’s  conference is in line with its quest of striking strategic alliance with relevant sectorial groups within corporate Nigeria.

    She noted that the oil and gas sector is vital to Smile’s corporate objective of helping the overall growth and development of the Nigerian economy.

    The conference provided a platform for the Nigerian oil and gas industry to discuss and debate the most pressing issues facing the industry as well as share successes and network with industry peers.

    The speaker line-up at the conference included senior representatives from government, new and existing managing directors of international oil companies operating in Nigeria, independent oil companies, international and indigenous services companies, financiers and lawyers who were able to address the delegates, voicing the different perspectives of the industry.

    The conference hosted over 6500 visitors and over 250 exhibiting companies, majority of which were indigenous. The exhibitors were able to showcase the latest technologies, products and services to current and potential business partners to secure deals and drive business forward. Exhibitors were unanimous in their praises for the ISP for providing efficient internet service that helped made the conference a resounding success.

    Ladipo thanked the exhibitors and visitors alike for patronising and appreciating Smile and its range of services. She noted that the company’s commendable outing at the conference is in keeping with its transformative objective of using the best and most innovative technologies to provide its customers with high quality, easy to use and affordable communication services. Smile’s vision and mission, she reiterated, remains the quest to be the broadband provider of choice in Nigeria and to enable its customers to fully benefit from the internet world.

  • Oil, gas entrepreneurs to tap from CBN’s N220b MSME cash

    Oil, gas entrepreneurs to tap from CBN’s N220b MSME cash

    The Federal Govern ment has unveiled an entrepreneurship, empowerment and employment initiate for young Nigerian entrepreneurs in the oil and gas industry.

    To speed up its take off, a window has been opened through the Central Bank of Nigeria (CBN) for qualified young entrepreneurs to access funding from the N220 billion Micro Small Medium Enterprises (MSME) fund.

    This new initiative, under the Youth Empowerment Strategy of Nigeria for the oil and gas sector will be executed through the Nigerian Content and Development Monitoring Board (NCDMB).

    The entrepreneurship, empowerment and employment programme will be manned by an Advisory Team from Annabel Group, that will prepare young Nigerians to become entrepreneurs in the oil and gas industry.

    Under the programme, young registered entrepreneurs would be equipped with training and funding to participate in the oil and gas sector to create jobs remain sustainable and expand globally.

    Speaking at the launch of the youth entrepreneurship scheme in Abuja yesterday, the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said the initiative would attract participation from the oil and gas sector of the economy as the government would assist young Nigerians to become Small and Medium Scale Entrepreneurs in the oil and gas sector.

    Addressing the youths gathered at the event, Aganga said: “The greatest asset you have now is your brain and that is where the future is.

    “The power of the youth in economic development is very important today. So any country that does not tap the potential of the youth can’t compete globally.

    “It is important we reinvent ourselves and position our economy for industrialisation and entrepreneurship.”

    The Chief Executive Officer, Annabel Group, Mr. Nicholas Okoye said the initiative is an idea that was borne out of the need to empower Nigerians in the oil and gas industry.

    Annabel’s role in this initiative he said “is that of facilitation by supporting with bankable business ideas. We want to take advantage of the Nigerian Content Development Act by assuring Nigerians to participate in the oil and gas sector to become the next generation of billionaires.”

    “A commitment has been received from the Central Bank of Nigeria that part of the N220 billion MSME fund would be deployed to fund MSMEs in the oil and gas sector through the initiative,” he said.

  • NIPP plants buy gas at subsidised rate, says DPR

    NIPP plants buy gas at subsidised rate, says DPR

    The Federal Government sells gas to the 10 power plants built under the National Integrated Power Plant (NIPP) by the Niger Delta Power Holding Company Nigeria (NDPHC) at the subsidised rate of $1.8 per 1000 standard cubic feet (scf) as against the fixed price of $2.5, it has been learnt.

    The Deputy Director, Gas Monitoring and Regulation, Department of Petroleum Resources (DPR), Antigha Ekaluo, told The Nation that the government mandated gas suppliers to sell to NIPP plants at that rate.

    Antigha, who spoke on the sideline of a stakeholders’conference, with the theme: “Implementation of the Nigerian Gas Transportation Network Code (NGTNC)”, in Lagos, said the plants were buying gas from the international oil companies (IOCs) and the Nigerian Gas Company (NGC).

    The plants have the capacity to provide a combined 5,000 megawatts (MW) of electricity to the national grid. The plants include: Geregu, Calabar,Egbema, Ihovbor and Gbarain.

    Others are Sapele, Omoku, Alaoji, Omotosho and Olorunsogo.

    Antigha said the plants were built and put in the charge of the NDPHC.

    According to him, the decision by gas suppliers to sell the product to the power firms at that rate was influenced by the forces of demand and supply.

    He said: “The Federal Government pegged the price of natural gas at $2.5 per 1,000 cubic feet per day for power firms, but the price of gas to Methanol, fertiliser and other companies is $3 per 1,000 cubic feet.  We have it on good note that many of the NIPPs get gas at $1.8 for production. This marks a cut in the gas price by $.7. The decision to sell gas at a price lower than $2.5 was not from the government.The gas suppliers in their own wisdom decided to sell it at $1.8. This is market forces at play.”

    “For methanol, fertiliser and other gas-based industries, they are expected to buy gas at $3 per 1000 cubic feet. The price in actual sense may turn out to be different. This has happened before the introduction of the Nigerian Gas Transportation Network Code. We want the same thing to happen as the government begins the implementation of the code. What we are saying is that the forces of demand and supply should be ruling the gas market.

    He said the government was providing incentives to gas users, especially those that have lean purses.

    Also, the General Manager, Gas, Nigerian National Petroleum Corporation (NNPC), Sam Ndukwe,  said the corporation was leading the transformation in the gas sector, especially in marketing and use of gas for domestic purposes.

    He said the government was planning more infrastructure to help  grow the sector. “Development of investments in gas vis-a-vis, making it readily available for users across the value chain, happens to be my key portfolio. We are trying to have additional infrastructure in the next five years. We are building new pipelines. The Trans Nigeria Gas Pipelines is one of such pipelines,” he said.

    He said the issues on use and sale of gas are contained in the Petroleum Industry Bill (PIB), adding that there would be changes to be effected in the sector when the bill is passed into law by the National Assembly.

    Ndukwe said: “PIB anticipates growth in the gas sector. With the bill, stakeholders are expecting great transformation in the oil and gas sector. The issue of gas infrastructure and the impact on various aspects of the  economy are in the bill.”

    The spokesman of NDPHC, Yakubu Lawal, said gas is the major problem in the industry, adding that the company had completed the building of the power plants.

    He said it was not true that the company was delaying the privatisation of the plants by not completing the project. He stressed that the firm had done its own part of the job.

    “Everybody knows that gas is the problem in the industry. Gas is a feedstock which the power plants need to produce optimally. The goal of our firm is to build the plant, and not to provide the gas,” he added.

     

  • We’re committed to building capacity in oil, gas, says bank

    Access Bank Plc is suporting the  Oil and Gas Conference in Abuja, which will end on Thursday.

    Executive Director, Corporate and Investment Banking Division, Access Bank, Elias Igbinakenzua, said the bank was delighted to be a part of the conference, adding that its involvement in the sector was in line with the commitment to contribute to the economic growth of the country.

    “Our support for the oil and gas industry remains strong. This further demonstrates our commitment to increase the capability of corporate customers as we continue to put them first in the heart of our business,” he said.

    Igbinakenzua said that Access Bank has been a major sponsor of the conference, noting that the bank’s participation at the event reflects its focus on being a strategic partner to key stakeholders across the industry value chain.

    He promised the bank’s continued partnership with and assistance to the oil and gas companies by supporting initiatives that will create business opportunities and investments in Nigeria and the African continent.

    He said: “Access Bank has played, and will continue to play a significant role in supporting the growth of the industry by arranging appropriate financing for operators to enable them execute their projects.”

    As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations. The bank strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant, he added.

  • Marginal fields operators urged to develop gas offshore in Lagos

    Marginal Fields operators have been advised to develop gas fields offshore in Lagos.

    The Managing Director, Frontier Oil Limited, owner of the Uquo Marginal Field in Oil Mining Lease (OML) 13 onshore, in Akwa Ibom State, Thomas Dada, who gave this advice, said gas revolution had started.

    He said though it is slow, it would begin to gather momentum soon, noting that there is abundant gas offshore in Lagos.

    Quoting statistics, he said about 60 per cent of power generated in the country is consumed in the Lagos, adding that there is the need for the development of gas resources to serve the needs of the people living in the state.

    Speaking with The Nation in Lagos, Dada said in the next 10 to 15 years, there would be a major improvement in the way gas is harnessed and used in the country. This, he said, would not only ensure the speedy growth of the country’s economy but would also improve the quality of life of Nigerians

    Dada said: “It means that people have to focus on sound business case to develop those gas resources. And in Lagos a consumer can pay higher price than in other places. They should find a way of linking those who have gas to those who want to generate power and be a facilitator of the process.

    “If you turn gas into power it means that the factories can produce goods, it means that people can be employed locally to generate wealth and that can only be well for the Nigerian nation. It means a major improvement in the quality of life of every individual in the country. It will have economic benefits as well as better the quality of life.”

    He reiterated the urgent need for the government to stop or curb pipeline vandalism in the country.

    He noted that Lagos gets its gas from Escravos in Delta State for Egbin Power Station and that there had been increasing capacity, urging the government to look for a way to overcome pipeline vandalism.

    “If pipelines were not constantly attacked, gas will be coming from the Delta region to Egbin Power Station, which is the biggest power station in the country, but it is not firing enough turbines because of inadequate gas. We need to solve the important problem of pipeline vandalism, because it is sabotage and there is no economic sense in attacking a gas pipeline, you cannot do anything with it. So it is pure economic sabotage and the government should take it in that manner and deal with it squarely.”

    Dada charged the operators to increase their efforts to bring the fields into production. He said the marginal fields have the potential to contribute to the development of oil and gas industry in the country. “We want more success stories because if the success story goes into the wider world it can only be good for Nigeria as a nation,” he added.

    He said Frontier Oil Limited was working towards becoming one of the leading indigenous exploration and production (E&P) firms in the country and a mid-size regional player.