Following the approval of a new gas and oil policy, the Federal Government is working to improve business environment, leading to increased investor activity and energy supply, thus improving prices of goods and services.
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who made this disclosure at Light up Nigeria conference organized by Brandzone Consulting, said that government has taken bold steps to restructure the country’s gas industry such that it will play a critical role in the industrialisation initiative of the country.
Kachikwu in his remarks at the conference in Lagos yesterday, with the theme, “Repositioning the energy sector for growth” said the approval by the Federal Executive Council (FEC), of the county’s gas policy was a clear indication of government’s readiness to fully tap the opportunities available in the midstream sector of the industry.
The minister who was represented by his Special Adviser, Technical Adiniji Gbite, explained that the gas policy has certainly provided the path to tackle all the identified challenges in the sector and its implementation will definitely lead to long-term development plan.
He assured that it would stimulate competitive environment that will be attractive to foreign and local investors.
According to him, identifying that natural gas will be an essential part of the future energy mix as the world moves to a low carbon future.
Kachikwu stressed that the country’s reform programmes for the gas sector is set out in the National Gas Policy and will additionally be clarified by proposed legislation that will tackle gas commercialization and with very clear rules or gas activities from the upstream, midstream and downstream sectors.
The legislation, he explained will treat gas as an independent commodity rather than a by-product of oil production and also explains the fiscal regime, adding that the legislation will also herald a simplified but clearly defined licensing administration which will regulate the licensing of operators throughout the entire value chain.
He said government recognises the benefits of natural gas as part of its efforts to meet the nations energy need and environmental responsibilities, and accordingly the gas policy articulates a vision for the sector and sets policy goals.