Operators in the Nigerian oil and gas sector at the opening session of a three-day Nigeria Gas Summit 2017, which started yesterday in Lagos, have called on the federal government to enact effective legislation to develop the Nigerian gas sector, stressing that the current legislation of Petroleum Act of 1969 prioritised crude oil production, THISDAY reports.
In his lead presentation, Partner and Head of Energy and Natural Resources at Streamsowers & Kohn, Mr. Chiagozie Hillary-Nwokonko, insisted that the current legislative framework is insufficient to catapult Nigeria into the gas-intensive future. He noted that the current legislations, which were all grounded on the Petroleum Act of 1969, focused largely on crude oil production. He said for the country to achieve its potentials in the gas sector, effective legislations have to be developed to create the needed certainty that would incentivise investments.
In his speech, the Chief Executive Officer of Seven Energy, Mr. Manish Maheshwari stated that the operators in the power and gas sectors cannot access funding as a result of the dysfunctional state of the value chain. He argued that only a quarter of the country’s 12,000 megawatt electricity installed capacity gets to the consumers as a result of the dysfunctional state of the value chain. Maheshwari, who was represented by James Odiase, also added that only 50 per cent of electricity consumed by customers is paid for.