Nigeria’s Midstream and Downstream Petroleum Regulatory Authority has developed a new gas pricing template for the power sector and gas-based industries, awaiting approval from President Bola Tinubu. The Decade of Gas Secretariat was inaugurated on Wednesday in Abuja to deepen domestic gas usage across the country from 2021 to 2030, based on Nigeria’s enormous gas reserves of over 206 trillion cubic feet.
Legacy Gas Debts of the Power Sector
The legacy gas debts of the power sector to gas suppliers in Nigeria have increased to about $1bn, according to the Decade of Gas Secretariat’s Coordinator, Ed Ubong. Efforts are ongoing to finalize the figures and find a comfortable way to address the debts to boost investors’ confidence in gas investments.
New Gas Pricing Template
The NMDPRA has been working on a new gas pricing template over the past year, and discussions are ongoing with various stakeholders, including the Special Adviser to the President on Energy. The template aims to incentivize gas producers to supply more to the country for power, gas-based industries, and commercial purposes.
The Decade of Gas Initiative
The Decade of Gas is a government project aimed at promoting the supply and distribution of gas as the nexus of energy for power, gas-based industries, and commercial purposes. The newly inaugurated Decade of Gas Secretariat will be located in the Abuja headquarters of the NMDPRA.
It’s important to note that Nigeria’s vast gas reserves have the potential to transform the country’s energy landscape and drive economic growth. However, addressing legacy gas debts and developing a transparent pricing template are critical steps in attracting investments and ensuring the success of the Decade of Gas initiative. The government’s commitment to promoting domestic gas usage is a positive development that could have significant implications for Nigeria’s energy sector.