Nigeria introduces gas policy

The Nigerian Cabinet announced the passing of a national gas policy to wean the country off its dependence on oil on Wednesday.

Under the plan, passed last week but published Wednesday, an independent petroleum regulator will be set up. Gas E&P and midstream activities are to be separated, and the Nigeria Gas Company is to be divided into transport and retail companies.

Nigeria has around 5.32 tcm (188 tcf) in estimated gas reserves, the seventh largest in the world. 

The promise of cheap and available gas has funnelled investment almost solely into gas-fired power plants. At the same time, however, Nigeria’s failure to fully realise its gas potential at the up and midstream levels, coupled with insecurity of the existing supply brought on by pipeline attacks, has prevented that investment from ever gathering enough speed to satisfy the nation’s power needs.

Increased gas usage could also decrease demand for refined products, most of which have to be imported.