By Ediri Ejoh

To increase the country’s revenue base against the backdrop of falling oil prices, experts have urged the Federal Government to adopt new technologies, and facilitate competitive fiscal terms and pricing for gas, to help harness stranded gas fields across Nigeria.

These, according to them are the only ways to harness and monetise stranded gas fields, while also vigorously pursuing the completion of gas gathering and utilisation projects the country.

Speaking on the issue at the just concluded Natural Gas Business forum of the Nigerian Gas Association, NGA, in Lagos, Deputy Director, Gas Monitoring and Regulation, Department of Petroleum Resources, DPR, Mr. Antigha Ekaluo said, the government must also facilitate third party access to stranded gas.

He said: “It (government) must pursue alternative funding model for gas infrastructure projects, address gaps in regulatory and commercial frameworks across the gas value chain, and adopt new technologies geared towards harnessing stranded gas.”

Arguing that gas is a key enabler for economic and national growth, Ekaluo also hinted that of the 600 trillion cubic feet, tcf, estimated gas reserves based on the United States’ geological survey, Nigeria can only boost of about 108 tcf reserve, while the rest remain stranded.

He further noted that as at January 1, 2015, the reserves life index stood at 118 trillion standard cubic feet, SCF, thus making the country the 7th most endowed gas nation in global ranking.

According to him, “Nigeria is endowed with abundant gas resources and the sector holds huge potential for unprecedented growth. The existing legal and regulatory framework, written primarily for oil does not provide robust technical and commercial framework for gas. There is therefore the need to pass the PIB into law, which will underpin the ongoing sector reforms.

“With the existence of gas, potential in inland basins, Benue Trough, the natural gas accumulation is mainly concentrated in the Niger Delta Basin. However some substantial discoveries were incidental to exploration for crude.”

He disclosed that the Joint Venture companies with NNPC account for 73 percent of current gas reserves, followed by indigenous firms with 13 percent, and production sharing contracts, PSC 12 percent, while marginal field operators contribute the least with two percent.

He also insisted that gas is available, but not developed due to economic and physical constraints, adding that the gas reserves in remote fields are un-economic for monetisation, as associated gas reserves are without gas gathering systems.

Ekaluo identified the factors responsible for the stranded gas to include capital expenditure, stifling growth of gas infrastructure, immature and sub-commercial domestic market, disincentive fiscal terms, and absence of robust legislative and commercial framework for gas.

He noted that effective gas sector development is a catalyst for growth and will have a multiplier effect on the country’s economy, while insisting on the need to pass the Petroleum Industry Bill, PIB into law. He said the PIB underpins ongoing sector reforms, adding that gas sector policies will provide Nigeria with the opportunity to harness and get maximum value from its stranded gas resources.