Ike Amos
Dublin, Ireland — Minister of State for Petroleum Resources, (Gas), Mr. Ekperikpe Ekpo, has blamed Nigeria’s inability to fully seize the opportunities presented by the global increase in gas demand on a number of local challenges.
Ekpo identified the challenges as inadequate infrastructure, unclear regulatory environment for gas and sabotage of pipelines.
Speaking at the Third Biennial International Conference on Hydrocarbon Science and Technology (ICHST), Ekpo stated that these challenges impinge on the country’s ability to optimise value from its abundant gas resources.
According to Ekpo, Nigeria was ill-prepared to utilise the opportunities presented by the Russia-Ukraine war to boost its gas revenue and increase its global gas market share as a result of these challenges.
Specifically, he said: “Recent world events like the Russia-Ukraine conflict, had accentuated the fragile nature of the dynamics of energy demand and supply.
“With a particular reference to gas, Nigeria was inadequately prepared and did not fully seize the opportunities to cover the shortfall created by the increase in demand for alternative sources of gas supply to Europe and other parts of the world. On our home-front there is need to boost the domestic market for gas’’
He noted that the country should place emphasis on addressing the issues of energy transition, sustainability and energy security, adding that these would guarantee that the country maximises the value from her abundant gas resources, while ensuring access to affordable and sustainable energy for all Nigerians.
The minister of state for gas revealed that the petroleum ministry is working with the the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMPDRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB) to further develop a robust regulatory and fiscal incentives, as provided for by the Petroleum Industry Act (PIA) 2021.
He added that with respect to the immediate optimisation of gas resources, all policy initiatives proposed by various stakeholders were being reviewed by his office to lend full ministerial support.
Also speaking, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, affirmed that the growth of the Nigerian oil and gas sector is being impacted by pipeline vandalization, oil-theft, low productivity, and underutilisation of Organisation of Petroleum Exporting Countries’ (OPEC) quota among others.
He implored stakeholders and experts in the Nigerian oil and gas industry to come up with home-grown solutions to the myriad of problems bedeviling the sector.
Lokpobiri further urged all the agencies under the supervision of the ministry of petroleum resources to collaborate with a view to evolving the required technology needed to solve the problems associated with the country’s local oil and gas production.
