HeadlinesOil & Gas DPR outlines five critical levers of gas development for economic diversification By maritimemag March 31, 2021152 views ShareTweet 0 Chinazor Megbolu The Department of Petroleum Resources (DPR) has outlined five critical levers for gas development in a bid to achieve economic diversification. The oil and gas sector regulator made this known in a statement issued by the Head, Public Affairs, DPR, Mr. Paul Osu, saying that the country is moving towards leveraging on its abundant gas resources for national growth and economic diversification. The also added that the initiative would further boost the economy with the usage of gas as the fuel for economic transformation. The Director, DPR, Mr. Sarki Auwalu, in his address at the Pre- Summit Conference of the Nigerian International Petroleum Summit (NIPS) tagged; ‘The Decade of Gas– Towards a Gas-Powered Economy’ in Abuja, said the levers has to do with availability, accessibility, affordability, acceptability and deliverability, which is critical to utilising Nigeria’s proven gas reserves of 203 TCF for national development. “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,” Auwalu said. He, however, praised the effort of President Muhammadu Buhari and the Minister of State for Petroleum Resources, Dr. Timipre Sylva, for their outstanding leadership in deepening gas utilisation in the country. He explained further that all these efforts had resulted in the setting up of the National Gas Expansion Programme, National Gas Transportation Network Code and the National Gas Flare Commercialisation Programme. Auwalu buttressed that the aforementioned also included the ongoing construction of the ELPS-II, OB3 and AKK pipelines as critical backbone gas infrastructure required to improve gas deliverability and availability. He pointed out that the government was also working seriously towards expediting action for the passage of the Petroleum Industry Bill (PIB) which would enhance clarity in legislative, regulatory, fiscal, and administrative frameworks in the sector. “This bill, when passed into law, will eliminate the uncertainties and bottlenecks associated with gas development in Nigeria and accelerate the growth of the Nigerian gas market to a fully developed and matured status. “Specifically, on gas matters, the PIB provides for the following: promotion of dedicated gas exploration and development, gas terms, fiscal separation of gas as a commodity. “It will also enhance the domestic gas delivery obligation, tariffing structure & methodology, open access regimes and revised gas pricing framework, to mention but a few. “Our focus remains the effective implementation of all policies and strategic programmes of government in an efficient manner that optimises the value of our petroleum resources for all stakeholders, all in overriding national interest,” he said © 2021, maritimemag. All rights reserved.