Nigeria orders oil firms to prioritise domestic supplies
Ayomide Owonibi, Lagos - updated: Tuesday 07-10-2008
Emmanuel Odusina,
Minister of State for Energy (Gas)Nigeria directed
international oil
and gas companies operating in the country to come up with a plan for domestic gas supply by the end of October, or risk a suspension of all liquefied natural gas export projects.
The Minister of State for Energy(Gas),Mr. Emmanuel Odusina, said the companies must set aside between 280 million and 350 million cubic feet of gas by the end of the year for domestic use, according to an e-mailed statement from the Nigerian National Petroleum Corporation, which represents state interests in the energy industry.
"We must prioritize domestic gas supply over any LNG project, since the country needs power,'' Odusina said.
Nigeria , whose natural-gas reserves of 187 trillion cubic feet are the world's seventh-biggest, is also Africa 's most populous country and suffers from chronic power shortages.
President Umaru Yar'Adua is concerned that oil companies appear to have disregarded his April directive for domestic gas supply.
He regretted that despite being issued with the obligations, no company has responded with credible supply and detailed work plans, but continue to focus their efforts on export or other less important gas utilization agenda.
“The Federal Government’s policy and regulations on gas supply to domestic market are not up for discussions or negotiations anymore.” He stressed.
Odusina further directed companies to submit a detailed plan for domestic gas supply plan before the end of October 2007.
According to him, the plans shall be included in the budgets and critical milestones and any other enablers subject to the boundary conditions of already established technical and pricing framework in other to have comprehensive and efficient document for uninterrupted supply of gas for power operation and distribution in the country.
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