A top official of Oando Gas and Power, Mr Oga Adejo-Ogiri, said Nigeria Gas Master Plan (NGMP) was an initiative that would attract investment and development of the nation’s gas infrastructure.
Adejo-Ogiri, a Senior Business Development Manager in the company stated this while interacting with newsmen on Thursday in Lagos.
According to him, for the Federal Government to fully achieve the objectives of the NGMP, there is need for a requisite legal framework.
“To speed up the development of our gas infrastructure countrywide, there is a need for government to establish a body or task force as done in the power sector with the Presidential Task Force on Power.
“Such a body will also take responsibility for the coordination and implementation of the NGMP and will also enable industry operators to have a specific entity to channel their concerns,” he said.
He proposed the setting up of a dedicated government-backed gas sector intervention fund with appropriate financing terms to encourage investments in gas supply sector as done in the power sector.
“Government can also increase its support to aid the bankability of projects in the gas-to-power sector via further capitalisation of the National Bulk Electricity Trader (NBET).
“There is need for further credit enhancement for Gas Supply and Purchase Agreements (GSPAs) and Power Purchase Agreements (PPAs),” he said.
Adejo-Ogiri commended the recent increase in the price of domestic gas-to-power, describing it as “positive step toward ensuring commerciality in the gas-to-power supply.”
He said, “Nigeria will attract the significant investment required over the next six years to supply adequate gas to meet the Federal Government’s proposed electricity production output of 20,000MW by 2020.
“It can be achieved if we create an enabling environment to sustain investments and achieve the holistic goals of the NGMP.”