News Column

Nigeria : SHAREHOLDERS urge NNPC to accelerate gas pipeline network construction

June 17, 2014

Shareholders in the gas sector urged the Nigerian National Petroleum Corporation to accelerate the rate of construction of gas pipeline networks in the nation for the power sector to realize its full potential.

They stressed the significance of the nation having sustainable and reliable gas infrastructure network if the privatization of the power sector must succeed.

The gas industry operators, who spoke at the yearly general meeting of the Nigerian Gas Association in Lagos, said the hope that the privatization exercise of the power sector would usher in new lease of live and create confidence in power and gas business in the nation.

The shareholders said that the unsettled debt profile of some of the government agencies such as the defunct Power Holding Company of Nigeria induced fears in the mind of gas producers, hence their refusal to make investments in the sector any further.

General manager, gas, Shell Petroleum Development Company, Victor Okoronkwo, said bridging the gap between stranded users of gas in the western Niger Delta and stranded gas suppliers in the eastern part through a reliable pipeline network has become advantageous if we must meet the power needs of the nation.

He said the Nigerian Gas Master plan did a great job but there are some challenges still that must be resolved move the industry forward.

Gas suppliers are scared that they might not be paid if they make further investments in the sector and urged the government to intervene on the problem of debts the defunct PHCN owes gas producers.

Victor said that the current gas structure should be reviewed to meet international standard.

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Source: TendersInfo (India)