[Abuja]–With the move that provides a guarantee of payment to gas suppliers through the Central Bank of Nigeria, CBN, and the World Bank, the federal government would help to partially address the perennial shortage of electricity witnessed across the country, as it would ensure a boost in gas supply to power generating companies.
The Nigerian National Petroleum Corporation, NNPC disclosed this yesterday in a statement in Abuja.
The NNPC stated that the payment guarantee, which was achieved a couple of days ago, was part of incentives to get the oil and gas companies to commercialize more of their gas.
On gas affordability, the Chief Operating Officer, Upstream, Mr. Bello Rabiu said explained that the Federal Government through what is called the Gas Master Plan stipulated a lower price for gas to the power sector which is the most important segment while other sectors of industries and manufacturing get gas at a commercial rate.
This measure, according to Rabiu, was to ensure that gas producers get value for the gas they produce for sale.
He added that the Gas Master Plan was geared towards addressing “four key critical issues of gas availability, infrastructure, commercialization framework and gas affordability.”
Rabiu further disclosed that a Gas Aggregation Company of Nigeria had been established by all the gas producing companies in Nigeria in order to achieve equality between domestic and export gas price and thus achieve appropriate gas pricing
Rabiu, while disclosing the efforts of NNPC to preserve the environment, said that the corporation had succeeded in reducing gas flaring in the country by 26 percentage points in the last 10 years from 36 per cent to 10, pushing Nigeria down from the second highest gas flaring nation in 2006 to the seventh position in 2016.Please Follow Us @ThePageNg