'Yar'Adua - New Gas Policy Underway' - Thisday

President Umaru Musa Yar'Adua has said that the Federal Government is coming up with a new gas policy designed to boost domestic supply.

Speaking in Abuja at the first Nigeria Gas Stakeholders Forum yesterday, he also disclosed that it would require about $10 billion, up from $4.5 billion, annually to sustain the growth in capacity for both oil and gas.

According to him, gas flares had reduced to about 36 per cent owing to growth in liquefied natural gas export and demands of the various independent power projects.

He said: "In line with our commitment to properly restructuring the sector, we are coming up with a domestic gas supply obligation and pricing regulation framework. This new regulation, which takes effects soon, mandates all operators in the country to set aside a predetermined amount of gas reserves and production for the domestic market."

Beside the attention on domestic market, he said the policy also "outlines the national gas pricing policy, a sector-based pricing structure aimed at stimulating the growth of both the power and industrial sectors."

A fundamental philosophy of his administration in the regulation, according to Yar'Adua, is the prioritisation of domestic gas over export, adding: "This would have the effect of ensuring the availability and affordability of gas."

He therefore implored participants to focus on evolving a practical roadmap to effectively tackling Nigeria's energy challenges through the efficient integration of gas into the energy mix. Full Story