Tuesday, 22 September 2015

Incoherent policies stall gas development plans — NAPE on September 22, 2015

The Nigerian Association By Sebastine Obasi & Michael Ebohof Petroleum Explorationists, NAPE, said that incoherent policies on gas to power have hindered the much talked about gas development plan.
The President of NAPE, Mr. Chikwendu Edoziem, who said this at an interaction with journalists in Lagos last week, also attributed insecurity and pipeline vandalism to poor government policies and governance.
According to Edoziem, “Lack of coherent policies on gas to power have significantly hindered the integration and long-term investments required to ensure the supply of gas to the power plants.
“This, together with pipeline vandalism, non-cost reflective tariff, lack of adequate capacity to process gas and transport to gas plants are directly responsible for the low power generation in the country.”
He blamed the government for the loss of more than N200 billion to vandalism, saying: “Insecurity and pipeline vandalism are due, in the main, to poor government policies and governance. It is estimated that N200 billion has been lost to this menace in addition to loss of assets to fire outbreaks, impact on the environment, loss of lives and reputation of Nigeria as a mature oil and gas producing country.”
Edoziem urged government to accelerate the funding and completion of new gas projects in the Western axis of the Niger Delta, to add about 2000 million standard cubic feet per day, MMscf/d of gas production.
He attributed the lull in oil projects to rising costs of exploration, while advocating the provision of an enabling environment and incentives to increase exploration opportunities especially in high-risk frontier basins and under-explored deep high pressure high temperature plays.

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