The Shell Petroleum Development Company of Nigeria Limited (SPDC), has restated commitment to support the Federal Government of Nigeria\u2019s goal of using the country\u2019s proven gas reserves to trigger economic activities for gas-based industrialization.<\/p>\n
SPDC\u2019s Managing Director and Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor, said Shell\u2019s support is shown in the company\u2019s multi-billion dollars investment in four of Nigerian National Petroleum Corporation\u2019s (NNPC) \u2018Seven Critical Gas Development Projects\u2019.<\/p>\n
Speaking at the Nigerian Gas Association\u2019s 12th<\/sup>\u00a0International Conference and Awards, held virtually on February 25, 2021, under the theme,\u201cPowering Forward: Enabling Nigeria\u2019s Industrialization via Gas\u201d, Mr. Okunbor said, \u201cShell has invested in the Assa North Gas Project; Four Unitised Gas Fields; Brass Fertilizer Company; and the Cluster Development of Okpokunou\/Tuomo West (OML 35\/62) to support the government\u2019s drive for national development.\u201d.<\/p>\n He said, \u201cI am very happy that NNPC and the Nigerian Content Development and Monitoring Board have taken key roles in these projects. These are positive steps.\u201d<\/p>\n He commended the government\u2019s recent progress in gas development and stated support for NNPC\u2019s aspiration to grow domestic gas usage in Nigeria to 5 billion cubic feet of gas per day from its current 1.7 billion cubic feet of gas per day by 2022.<\/p>\n Okunbor said, \u201cNigeria has launched out on a few audacious and, frankly, great projects to essentially drive our ambition as a country in this regard. Let\u2019s find a way to make sure that we stay the course and begin to put our efforts in a consistent manner towards downstream where our country can get ultimate benefit for gas.\u201d<\/p>\n He counselled for robust engagement in discussions for an agreeable price framework in order to attract investments in the country\u2019s rich gas sector.<\/p>\n \u201cA robust pricing framework would be very helpful to unlock Nigeria\u2019s proven gas reserves, especially for Power, Agriculture and Industrial sectors.\u201d<\/p>\n Okunbor said the current pricing regime does not quite fit the wider framework of what the gas industry does. \u201cWe want to incentivize methanol and fertilizer production, which is extremely important, to gear up our agricultural sector but the price regime now in that sector is lower than the kind of prices that you have for supply to the Power sector and industrial establishments\u201d, he said.<\/p>\n \u201cTo make domestic gas work, we do need a right price regime. It might just mean that some sectors are supported more than others that can naturally carry themselves. The Petroleum Industry Bill provides that framework.\u201d Okunbor said.<\/p>\n He urged policy makers to strike a careful balance between trying to raise funds \u2013 in terms of the kind of taxes and royalties that are put on gas \u2013 and understanding that this is actually much more of a resource that drives national development. \u201cGas is by far more important as a catalyst for development, he said.\u201d<\/p>\n