Nigeria still produces 1.8 trillion
standard cubic feet (tcf) yearly and about 20 % of associated gas produced
yearly in the country which is enough to generate 6,000 megawatts (MW) of
electricity is still being flared, The Nation reports.
The Managing
Director, Energy and Mineral Resources Limited (EMR), Abiola Ajayi, has stressed
the need for more investments in the sector to monetize the gas instead of
burning it.
He said
International Oil Companies (IOCs) have failed to contribute to the domestic
gas obligation, which has adversely affected output of the power plants in the
country. Ajayi said for the country to achieve 20,000Mw generation by 2020, gas
required for open cycle power plants is at least 4.5 billion standard cubic
feet per day (bscf/d), and 3.5 bscf/d for combined cycle plants.
Ajayi also
said the power sector, which requires about 70 per cent of gas produced for
local consumption could not afford a market driven price, which is the reason
for the unwilling disposition of the IOCs to commit to domestic supply.
Ajayi called
for the establishment of a gas department within the Ministry of Petroleum
Resources to oversee the execution of regulations in accordance with the
Department of Petroleum Resources (DPR).
He said for
gas supply to be sustainable, the government must ensure, among other things, a
bankable commercial framework, gas investment drive, and address the issue of
pipeline vandalisation as well as pricing based on
willing-buyer-willing-seller.
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