The chairman of National Gas Expansion Programme (NGEP), Mohammed Ibrahim, says the federal government will launch a new pricing framework to regulate operations in the gas sector.
He was speaking on Friday at the 12th Nigerian Gas Association international conference.
Represented by Olasupo Agbaje, a member of NGPE, Ibrahim said Nigeria needs to unlock new frontiers in the gas sector.
He said the government is working towards achieving a 40 per cent conversion from petrol to gas for vehicles in the country.
“As a nation we are committed to unlocking new frontiers through a combination of policy and technology. In terms of unlocking these frontiers, we find that we need to undertake a pricing framework review that has been concluded and in the next few days, we are going to be having a new pricing framework that will guide operations in the gas sector. The pricing will make it easy for operators to look at domestic options,” he said.
Ibrahim said a committee was established in 2020 to look into challenges of the industry after “several parts of the gas sector was distorted.”
He said the committee has concluded its deliberations and is currently at the stage of submitting its report.
“I am aware that the committee is at the stage of submitting its report. We expect that this will address some of the pricing challenges,” he said.
“All through the entire value chain, from production, exploration, supply and distribution, this will impact on gas trade as a whole in Nigeria.”