Need To Develop The Nigeria Gas Industry

If the Nigeria gas industry is to meet the expectations of its home and international customers, more purposeful actions are expected from its operators. If properly handled, Nigeria gas industry is capable of generating more income than oil. Though no detail facts are available from the vital sector of our economy, more efforts are required, if we are adequately to meet domestic and international requirements after over half a century years of operation.For many years, millions and millions of cubic gas were wasted at the mining sites by flaring. International and internal markets exist for Nigeria gas. If well managed, many believe that gas industry will yield revenue like petroleum products. At this point of our development, we need to protect our forest resources. There is no way to do this than proper and popular use of domestic gas in Nigeria. It will result into rural technologies and cleaner environment. It will create more jobs and arrest migration from to urban areas. At present, gas market seems to be badly managed in the country.There is shortage of internal gas supply, so local industry players complain of shortage of gas while at the world market level our gas continues to attract low prices because of the European Union, EU, manipulation of our gas to meet its members needs. For example, the world market prices are low and not a true reflection of market trend because EU countries which are the owners of gas companies in Nigeria and Africa manipulate the market to ensure that supply does not fall below demand to make it favourable to them.At present Nigerian Liquified  Natural Gas, NLNG, plant especially the pipeline between Bonny and other centres is said to be capable of producing 30 cubic tonnes per annum. It is very regrettable that internal gas demand in Nigeria is not met because the foreign oil companies make sure there is shortage at the internal gas market. Many experts for example doubt Nigerian Liquefied Natural Gas, NLNG financial feasibility and that is one of main reasons why many believe Nigeria should devote more attention for the proper development of domestic gas industry and its uses. A very very international organisation that will regulate the supply of gas to similar to the Organisation of Petroleum Exporting Countries, OPEC is very necessary to regulate demand and supply and ensure appropriate international pricing.Recently, traditional rulers and elders from Brass Town in Brass local government of Bayelsa State raised an alarm, which one thinks may require urgent attention of government. According to them, shorelines of many gas producing communities and areas are facing gradual depletion which is greatly affecting many coastal communities and the LNG industry. They called on the federal government to invite experts who will help in the efforts to timely check the menace. This is a serious national threat which cannot be ignored.The Nigeria National Petroleum Corporation, NNPC which holds 49 percent equity in the NLNG on behalf of the Nigerian government confirmed that all monies from its investments are fully remitted into the federal government accounts. One expects that the proceeds from investments should be judiciously used including the development and improvement of producing areas.
By Chuma Wilson