The Federal Government can make gas investment more profitable by providing enabling environment for operators, Nigeria Gas Association (NGA) President, Mr Thomas Dada, has said.
In an interview with The Nation, he listed other factors to include the provision of credit facility to operators by banks, and ensuring that local and foreign investors participated in the sector.
Dada said the sector would be made more profitable for investors when the right policies are in place and operators are able to access funds for growth.
He said when banks provide funds, there would be increase in investments.
He praised the decision of the Federal Government to develop a new gas policy, adding that the initiative would help in galvanising the potential in the sector.
He urged stakeholders, including the Federal Government, the Nigerian National Petroleum Corporation (NNPC) and other regulators, as well as investors to work together to make the sector viable.
He said the sector has its own problems that need to be addressed urgently to achieve the desired results.
Dada, also the Managing Director, Frontier Oil Limited, said there must be a willing buyer and a willing seller of gas, arguing that the idea would lead to competition among operators.
The idea, Dada said, would help in unlocking the potential in the sector for growth.
On power, Dada said operators in the electricity industry depend on one another for growth.
“Consumers of electricity must pay their bills to their power distribution companies(DisCos) and DisCos in return would pay the power generation companies (GenCos) for the power they supplied the DisCos.
‘’Also, the GenCos pay the gas marketing companies for gas they supply them to generate electricity. The sector operates like a chain; one aspect depending on the other for growth,” he said.
He said the Nigerian Gas Association is into advocacy, adding that the body has senstised the government and other stakeholders on how to develop the sector.
The NGA chief urged the government to maximise the potential in the petroleum industry.
He said the government could achieve this goal, when the country’s exports ensure refined petroleum products, instead of crude oil and also exports Liquefied Petroleum Gas (LPG) instead of natural gas it is exporting to countries in Asia and Middle East to earn revenue for the government.