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New Gas Policy Seeks Separation of Upstream, Downstream Operations

In a bid to ensure   reduction of   dependence on crude oil the Federal Government has approved a national   gas exploration and facilities  policy.

The Federal Government approval of the national gas policy is seen as a  move  to lessen  the import bill for refined petroleum products.

According to a statement by the Ministry of Petroleum Resources, the 100-page National Gas Policy, also, seeks to set up a single independent petroleum regulator.

IT is further targeted at separating the upstream from the midstream operations and to separate gas infrastructure ownership and operations from gas trading and it also divides the Nigeria Gas Company into separate transport and gas marketing companies while introducing  “market-led wholesale gas pricing” after a transitional period.

This is coming at the heels of the Senate’s passage of the Petroleum Industry Administration Bill (PIAB) in May.

Nigeria has the world’s ninth largest proven gas reserves at 187 Tcf, but requires more infrastructure to take advantage of those resources.

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