‘Nigeria Needs $10bn To Address Infrastructure Deficit In Gas Sector’

The Federal Government currently needs up to $10bn to meet the infrastructural need of the gas sector.

The Managing Director, Oilserve Limited Gbite Falade, said this on Wednesday at the Nigeria International Pipeline Technology and Security Webinar Conference.

He lamented that the absence of key infrastructure has hindered significant progress in the Nigeria oil and gas sector.

He explained that ensuring availability of gas is a major panacea to addressing the huge deficit in the sector.

He said, “Nigeria domestic gas pipeline is approximately 2,000 km, but ideally, it should be 10,000km.

“We have insufficient pipeline infrastructure to support domestic gas market aspiration.”

He further noted that until sufficient investment to proliferate gas pipelines systems are made, development of gas for domestic market will remain non-viable.

Speaking on the Federal Government’s Ajaokuta-Kaduna-Kano Gas project, Falade said the project at completion would create not less than 5,000 jobs, revive the construction industry and provide outlet for monetization of gas reserves.

He said, “The AKK project will provide several gas distribution zones to be spurned at commercially viable locations.

“It will provide a cheaper and clearer source of energy for industrial revolution.”

The Chief Operating Officer, B.G Technical Limited, Udoka Onuoha called for effective maintenance of gas pipelines for optimal use.

He said that maintenance of pipelines is necessary to ensuring that gas facilities operate effectively.

“Regular piping and maintenance is necessary to remove substance, debris or foreign materials in the pipelines. It also provides timely information for decision making,” he added.

Onuoha further said there is need for local companies to invest more in equipment, and human resources as well as ensure prudent management of resources.

The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari in his remarks noted that pipeline has remained a useful asset in transporting crude oil and products over long distance.

Kyari, who was represented by the Managing Director, Nigeria Pipelines and Storage Limited, Ada Oyetunde said that pipeline vandalism has been a challenge to the Federal Government.

“Over the last two decades, we have struggled to sustain our pipelines, only 38 per cent of the National pipelines are operational.

“Developing the new pipeline is critical to a quick revamp of the refineries across the country.

“However, NNPC is working to ensure through rehabilitation of the refineries are back to operate at 90 percent”.

The GMD also said that gas would be sold at market reflective prices which would allow for return on investment.

He added, “We are carrying out sensitisation program in states to ensure that pipeline operations are safe with zero or minimal negative impact on the society.

“Also we encourage private sector investment , as it is necessary to review pipeline infrastructure for economic growth in Nigeria.”