The OPTS Chairman, Mike Sangster was invited by the NGA as a distinguished speaker to the NGA 2020-2021 industry multilogues business forum. The virtual multilogues held over 2 days, on the 8th and 9th of December, 2020. The themes were Achieving consensus pricing for the Nigerian Natural gas value chain and The PIB Dialogue: Crystalizing sector legalization to spur wider development.
The OPTS Chairman was ably represented by the Gas Subcommittee lead, Mr. Okechukwu Mba. OPTS in its position paper presented at the session recommended that the three-tier sectoral demand segments of power, gas-based industries, and commercial be maintained and that the domestic gas framework should not be linked to export parity pricing.
Mr. Okechukwu Mba of Seplat, said: “Domestic gas demand obligation in the DGSO (Domestic Gas Supply Obligations) arrangement should also be capped at the current multi-year levels and discontinued after 2022, which is the end of the current multi-year allocations. This will represent a major transition milestone to liberalize gas market in Nigeria after marking 15 years of domestic gas supply obligations.”
“Nigeria should also draw lessons from other countries and make it competitive to attract much-needed investments into the gas sector and stimulate the growth of our GDP. This is even more critical in low commodity pricing environment and in a situation of reduced capital flow to the economy.”
“In general, a successful and timely development of Nigeria’s vast gas resources including its Deepwater resources will require the industry and authorities working together as close partners to achieve this common objective”.
He added that OPTS believed that accelerating gas development in Nigeria was key to boosting the country’s economy, advising that Nigeria needs to strike a balance between viewing gas as a source of revenue and more importantly, as a catalyst for economic growth.
He also said that the Petroleum Industry Bill (PIB) currently in consideration at the National Assembly poses a unique opportunity to make a change towards the transition to a gas-based economy by enabling commercial terms that will pave the way for market-based pricing in the near future.
He concluded by saying, “In this regard, it is expedient that the federal government continues its leadership role to align a broad group of government ministries and industry stakeholders.”
Click on the link to read an article in Thisday Newspaper capturing OPTS’ participation at the NGA Business Forum last week: Boosting Investments in Gas Sector | THISDAYLIVE
