The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has stated that the federal government has proposed a legislation that will clarify the National Gas Policy and treat gas as an independent commodity, rather than a by-product of crude oil production.
Speaking in Lagos at the recent 2018 Brand Innovation Conference, tagged “LightUpNigeria Conference,” which had as its theme “Repositioning the Energy Sector for Growth,” Kachikwu said the proposed gas legislation would tackle gas commercialization and set clear rules on gas activities from the upstream, midstream and downstream sectors.
According to him, the legislation will also herald a simplified but clearly defined licensing administration, which will regulate the licensing of operators in the gas value chain.
Kachikwu who delivered a keynote address on “Scaling the Nigeria Energy Hurdle: Delivering Energy for Development and Growth – Issues, Challenges, Gaps and Opportunities,” noted that natural gas will be an essential part of the future energy mix as the world moves to a low carbon future.
The minister, who was represented by his Senior Technical Adviser, Gas and Power, Mr. Gbite Adeniji pointed out that opaqueness and inefficiency has always been a characteristic that negatively plagued the petroleum industry.
“These were known to demotivate investors, and Mr. President mandated for a new push for efficiency in all sectors and we portrayed this, via out determination to reduce the cost of oil production and contracting cycle. We identified the root causes of the high $32 per barrel production cost and 24 -36 months contracting cycle via inclusive consultations with stakeholders and then began implementation of solutions. Progress is evident by the reduction of both technical costs and contracting cycle and also increase in Foreign Direct Investments (FIDs) into the country,” Kachikwu said.
In her welcome address, the convener of the conference and Managing Partner/CEO of Brandzone LLC, Chizor Malize, said the theme of this year’s conference was selected to reflect the fundamental changes to the dynamics of the world energy industry, which the Nigerian oil and gas industry needed to align to.
She noted that energy is the basis for industrial and economic activities as it provides an essential component for almost all human activities.
Malize stated that the LightUpNigeria Conference will kick-start the journey towards looking inwards into the uniqueness of Nigeria’s energy problem and finding innovative solutions that recognise the distinctiveness of the country’s energy market.
She acknowledged that energy provides solutions for power, heating, lighting, education, mineral extraction, industrial production, manufacturing and transportation.
According to her, the energy sector has a pivotal role to play in illuminating the country, adding that it is indispensable and crucial to the country’s growth.