FG unveils new pricing framework for gas operations

FG unveils new pricing framework for gas operations

Chinazor Megbolu

The Federal Government has said it will soon unveil a new pricing framework towards regulating the operations of the gas sector.

The Chairman, National Gas Expansion Programme (NGEP), Mallam Mohammed Ibrahim, made the disclosure on Friday at the 12th Nigerian Gas Association international Conference, saying the idea is to help unlock new frontiers in the sector.

Ibrahim, who was represented by a member of NGEP, Mr. Olasupo Agbaje, noted the government has mapped out plans that would help towards achieving a 40 per cent conversion from petrol to gas for vehicles in Nigeria.

“As a nation we are committed to unlocking new frontiers through a combination of policy and technology. In terms of unlocking these frontiers, we found that we need to undertake a pricing framework review that has been concluded.

“In the next few days, we are going to be having a new pricing framework that will guide operations in the gas sector. The pricing will make it easy for operators to look at domestic options,” Ibrahim said.

He further posited that a committee was established in 2020 to checkmate the challenges of the industry as a result of several parts of the gas sector being distorted

Ibrahim hinted that the committee has already concluded its deliberations and presently at the stage of submitting its report.

According to him, “I am aware that the committee is at the stage of submitting its report. We expect that this will address some of the pricing challenges.

“All through the entire value chain, from production, exploration, supply and distribution, this will impact on gas trade as a whole in Nigeria”.