Nestoil Calls for Change in Energy Focus from Oil to Gas

Group Managing Director of Nestoil Group Dr Ernest Azudialu-Obiejesi has called on the Federal Government to invest more in gas infrastructure rather than crude oil, which according to him will continue to decline in long term economic value as the world continues to embrace cleaner forms of energy.

Dr Azudialu who was speaking at the Nigeria Oil and Gas summit in Abuja said ’many countries in Europe are at the forefront of this energy revolution, and with time, African countries, including Nigeria will be dragged along. It is time now to embrace a paradigm shift, and change Nigeria’s energy focus squarely from crude oil to gas’.

He also called on the Federal Government to allow market forces determine the cost of gas in order for the Nigerian economy to benefit from Nigeria’s gas prowess.

The Nestoil Group Managing Director said it was rather sad to note that a country like South Africa without Nigeria’s natural gas reserves produces over 40,000 megawatts of electricity for a population of only 57 million people while Nigeria could only manage about 4,000 megawatts of power despite having the 9th largest gas deposits in the world.

The Nestoil Group Managing Director said the Nigerian power deficit will not improve if the Federal Government does not take the drastic step of completely allowing market forces to determine costs.

He said a willing-buyer-willing-seller scenario that allows gas producers to sell to off takers at commercially viable rates is what will encourage investments in the gas sector. He said the successful deregulation of the Telecommunications sector in Nigeria was a good case study that the Oil and Gas industry should emulate in order to stimulate exponential growth in that sector. According to Dr Azudialu, the Telecoms sector is growing in Nigeria because Government regulations are relaxed enough to allow competition to drive pricing and product offerings.

Source / More : Nestoil


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