Lagos — Nigeria incurs daily loss of $4.9million due to gas flared by oil and gas companies in the country, Director of Department of Petroleum Resources(DPR), Engineer Osahon has said.
He said the country currently flared 1.4billion cubic feet of gas and that the loss was measured against $3.5 by 1000 standard cubic feet of gas.
Osahon spoke in Lagos yesterday at the 14th Annual General Meeting of the Nigerian Gas Association(NGA) and conveyed his agency's displeasure over the development, especially against the backdrop of the country's quest to increase gas production and utilization.
Osahon, who was represented at the event by Engineer Okpara Ocha, Deputy Director Gas of DPR, said Nigeria has a robust portfolio of investment opportunities in both power and gas sectors.
He said: "Exploration efforts in the Benue through the Chad Basin and Anambra Basin show that the Inland Basins have potential to add to the national gas reserve volume."
He said the aspiration of the federal government is to monetize gas reserve, eliminate gas flare, as well ensure greater private sector investment in gas production, transportation and distribution of infrastructure.
According to him, there would be regional gas processing hub and intense use of gas in the sector for automotive fuel after the passage of the Petroleum Industry Bill currently before the National Assembly.
He said the era would also usher in vibrant transmission network, fully functional and third party access and successful implementation of network codes.
Speaking, Managing Director of MobilUnlimited AND Chairman of Oil Producers Trade Section(OPTS), Mr Mark Ward said Nigeria's huge gas potential can drive development through power gas based industrialization and export. He said the though the country has made progress in the gas sector through Gasmasterplan development power sector reform but still needs to work more on gas infrastructure and fiscal regime.
According to him, the Petroleum Industry Bill gas fiscals will make Nigeria gas sector extremely uncompetitive.
But the Nigerian National Petroleum Corporation's Group Executive Director, Gas and Power, Dr. David Ige, in his presentation said Nigeria has invested hugely in gas infrastructure in recent years.
He told participants at the meeting that Nigeria would connect gas pipelines across its zones in no distant future.
He also said domestic gas production has increased by 25percent in the last five years due to government's renewed attention on the gas sector.
He said it is not true that the Petroleum Industry Bill fiscals pose a death-kneel regime on the multinational oil and gas companies, adding that the development was meant to create fair level playing ground for stake holders in the sector.