At a stakeholders’ consultative meeting in Abuja, Shell Petroleum Development Company of Nigeria’s Managing Director, Mr. Osagie Okunbor, called on the Federal Government to address the $1.3 billion debt owed to gas producers.
This plea comes amidst concerns over the impact of the debt on the operations of gas producers and its repercussions on electricity generation due to gas constraints.
Okunbor highlighted the detrimental effects of the outstanding debt, emphasizing the reluctance of businesses to invest further in Nigeria’s gas initiatives.
He stressed that resolving the debt issue is crucial for incentivizing investments and facilitating infrastructure development in the gas sector.
Meanwhile, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, outlined the government’s measures to enhance the country’s gas sector.
These measures include intensifying efforts to increase upstream gas production, prioritizing domestication and penetration of Liquefied Petroleum Gas (LPG), and completing major gas midstream infrastructure projects such as the AKK Gas Pipeline Project.
Ekpo emphasized the importance of unlocking Nigeria’s gas potential and addressing challenges such as gas flaring, inadequate infrastructure, and pricing concerns. He expressed confidence that collaborative efforts between the public and private sectors would lead to the development of a comprehensive roadmap for the gas sector’s sustainable growth.
The stakeholders’ meeting also featured presentations from various industry bodies, including the Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), and Nigerian Gas Association (NGA), among others.
