Business
DPR gets $500m gas investment proposals in one year
The Department of Petroleum Resources (DPR) says it received investment proposals of about $500 million from gas development investors for building gas pipelines and other facilities since the implementation of the Nigerian Gas Transportation Network Code (NGTCN) began a year ago.
This is according to DPR Director/Chief Executive Officer, Mr Sarki Auwalu, during an interactive session with the media to mark the first year of operationalizing the network code in Nigeria on Tuesday in Lagos.
Auwalu, while reviewing the programme, noted that the oil and gas regulator had improved investors’ confidence in the evolving domestic gas market, NAN reported.
“Confidence of investors across the domestic gas value chain has shown positive trend through specific requests for DPR’s support for gas supply to the tune of over 500 million standard cubic feet per day and for investments of over $500 million,” he said.
“The network code investment areas that the DPR has received proposals on include power generation, ammonia for fertiliser, methanol plant and domestic liquefied natural gas. Others are virtual pipeline systems, new gas hubs and the establishment of a Nigerian Gas Trading Exchange.”
Auwalu said that through the implementation of the network code, the DPR was able to improve the much-needed market alignment between critical demand points for gas and available supply opportunities.
He noted that the NGTNC has also improved domestic gas market linkage between downstream demand points and upstream gas supply opportunities.
He said the construction of gas pipelines across the country and the increased investment brought by the NGTCN would create job opportunities for Nigerians.
Auwalu said it had also increased the activities of investors like gas shippers, suppliers, agents on the network and had further promoted gas availability, accessibility, affordability and awareness.
He added that the network code had improved transparency and predictability in gas trading, thereby stimulating the growth of gas business and deepening the performance of the Nigerian gas value chain
