The Federal Government will soon launch a new pricing framework to regulate operations in the gas sector.
This disclosure was made at the 12th Nigerian Gas Association International Conference by the Chairman of National Gas Expansion Programme (NGEP), Dr. Mohammed Ibrahim.
Dr. Mohammed Ibrahim, who spoke through a member of the National Gas Expansion Programme (NGEP), Olasupo Agbaje, stressed the need for our country (Nigeria) to unlock new frontiers in the gas sector, adding that the Federal Government is already working towards achieving a 40% conversion from Petrol to Gas for vehicles in the country.
He further revealed that the Committee, which was established in 2020 to look into challenges of the gas industry, have concluded its deliberations and he is aware that the committee is currently at the stage of submitting its report.
He stated that as a nation, we are committed to unlocking new frontiers through a combination of policy and technology. In terms of unlocking these frontiers, we find that we need to undertake a pricing framework that will guide operation in the gas sector.
On the possible benefits of the new pricing framework, he explained that the pricing will make it easy for operators to look at domestic options, adding that all through the entire value chain, from production, exploration, supply and distribution, this will impact on gas trade as a whole in Nigeria.
Recall that as part of its commitment to providing alternative energy for Nigerians; the Federal Government unveiled the National Gas Expansion Programme in December 2020, marking the official entry of the three alternative fuels – LPG, CNG and LNG as options for transportation, industrial and domestic use.