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.