By Clara Nwachukwu    & Sebastine Obasi, Houston, Texas

Despite the current gas price of $2.50 per thousand British Thermal Unit, Btu, stakeholders have identified pricing, funding and infrastructure as the core impediments to appropriate gas development in Nigeria.

The experts, who spoke at the ongoing Offshore Technology Conference, OTC, in Houston, Texas, United States of America, said the price of gas should be increased to between $4 and $5 per thousand cubic feet, for genuine investors to be attracted to gas development.

According to the Managing Director, Frontier Oil Limited, Mr. Dada Thomas, the price base line of $4-$5 per a thousand Btu is imperative for investors to be attracted to the gas business in the country.

Thomas said the gas price graduated from 50 cent per standard Btu to $1.50 and now $2.50.

He, however, expressed hope that for new entrants to the business, the new gas price base of $2.50 would make it much easier for them to raise funds to finance their projects.

He attributed the poor funding of gas projects by investors to the low gas price.

Also speaking, Chairman/Chief Executive OilServe Limited, an oil servicing company, Chief Emeka Okwuosa, said fiscal policies associated with gas production, transportation and utilization would make a lot of difference.

He said whether or not $2.50 cent is the price, what is important is that Nigeria has moved up from the price regime of 50 cents per thousand Btu, to the current price of $2.50, as this will give stakeholders the ability to responds to funding of projects promptly.

For Managing Director, Shell Petroleum Development company, SPDC, and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, although there is sufficient resource base in the country to meet gas export and domestic use, the issue of pricing remained central.

According to him, “the issue of pricing has been a journey. Few years ago, it was a bit of struggle, but this is central to the gas development in the country.”

He also recommended full implementation of the nation’s Gas Master Plan, GMP, as the answer to all issues related to pricing and infrastructure deficiency in the industry.