The Department of Petroleum Resources (DPR) has outlined five critical levers for gas development as Nigeria moves to leverage its abundant gas resources for national growth, diversification of the economy and to use gas as the fuel for economic transformation.
In a statement issued on Monday by Mr Paul Osu, Head, Public Affairs, DPR said Mr Sarki Auwalu, Director, DPR, made this known while speaking at the Pre- Summit Conference of the Nigerian International Petroleum Summit (NIPS) on the principal theme: ‘The Decade of Gas – Towards a Gas-Powered Economy’ in Abuja.
Auwalu said the levers: availability, accessibility, affordability, and acceptability as well as
deliverability were critical to utilising Nigeria’s proven gas reserves of 203 TCF for national development.
He said: “Whereas references have been made to the other elements in this
discussion, right pricing of gas is requiring particular attention to ensure security of gas supply and security of credible gas demand.
“This is because upstream gas producers must be assured that they will receive fair and equitable returns for their investments whereas, the price must be such that the end-users are able to pay for gas offtake in a reliable and consistent manner.
“Accordingly, the most robust and sustainable pricing mechanism is that which ‘let the market speak’ in a way that all costs are reflective of prevailing market conditions and for which the economic dynamics of demand and
supply are allowed to interplay in an open, transparent, and free market environment.
“Thus, our drive as a nation should be early attainment to the Willing Buyer; Willing Seller market status. Any transitional pricing arrangements, today, must be structured to quickly give way for market-led pricing regime and conditions”