Dr Ernest Obiejesi, the Group Managing Director, Nestoil Limited, on Tuesday called for bolder initiatives to strengthen domestic gas supply in the country.
A statement by the company said that Obiejesi made the call at the fourth Nigeria Gas Conference held in Abuja.
Obiejesi said that the gas supply industry in Nigeria would experience a boom if the liquidity issues in the power sector were fixed.
He said that the power sector held the key to stimulating growth in the domestic market.
According to him, the power sector accounts for over 80 per cent of the domestic gas off take market.
“Liquidity issues in the power sector means that gas producers are owed huge sums of money for gas they have supplied,” he said.
Obiejesi noted that the development was a huge disincentive for gas producers to invest heavily in any form of gas gathering infrastructure.
The Nestoil boss, however, lauded the Federal Government for the recent Gas Flaring Regulation embedded in the 2017 Gas Policy.
He described the policy as an audacious and innovative step by government to discourage gas flaring, noting that the initiative was not far reaching enough.
Obiejesi called for a permanent solution to address the liquidity issues in the downstream and power sectors to encourage much needed investments in gas gathering infrastructure that would eliminate gas flaring.
“Everyone agrees that a willing-buyer-willing-seller arrangement is what will ultimately unbundle the gas industry in Nigeria and across the West Coast.
“Government must be ready to make the right seed-investments and take the tough decisions that will enable the gas supply market grow into maturity,” Obiejesi said.
He also urged the government to continue to encourage indigenous players in the oil and gas industry.
Nestoil is Nigeria’s largest indigenous Engineering, Procurement, Construction and Commissioning (EPCC) Company in the Oil and Gas sector with significant contribution to the industry since inception in 1991.
With over 1,500 direct employees, Nestoil continues to redefine industry standards in pipeline construction, repairs and maintenance with associated facilities for dredging, river crossing and shoreline protection.
