Operator Seeks Incentives for Indigenous Companies to Boost Gas Production

Peter Uzoho

The Chief Executive Officer of Shoreline Natural Resources Limited, Dr Ladi Bada, has called for government’s incentives for indigenous producers to enable them boost gas supply.

The comments came against the backdrop of Nigeria’s current desperation to boost natural gas production to meet both domestic and export demand, especially with the pressure from Europe.

Bada, whose company operates the prolific Oil Mining Lease (OML) 30 and the 200 kilometres Tran-Forcados Pipeline (TFP), told THISDAY in a chat that incentives were needed to encourage the Nigerian independent oil and gas producers to invest more in order to increase the nation’s gas production.

He said currently, the local firms produce over 70 per cent of the gas used in-country for the firing of thermal power plants.

Nigeria, Africa’s largest gas producer and world’s ninth largest producing nation has  about 208 trillion cubic feet (tcf) of proven gas reserves and over 600tcf yet to be proven, but produces between 7 to 8 billion cubic feet (bcf) daily. 

As part of its long term targets, government wants to raise the volume of gas production to 220bcf by 2030, eight years from now, banking on its much-talked-about Decade of Gas Agenda to actualise its target. 

However, Bada explained that such incentives should come by way of government resolving the payment constraints around gas supply to power plants.

He added that the inability of the power plants to pay gas producers as an when due was largely responsible for the limited electricity generation witnessed in the country as gas suppliers refuse to supply without payment guarantee.