Nigeria Launches Regulations to Encourage Gas Use — Oil Minister
ABUJA (Reuters) — Nigeria has launched new regulations covering gas transportation which it hopes will expand use of the fuel and encourage private investment in pipelines, Minister of State for Petroleum Timipre Sylva said on Monday.
Nigeria has rich gas reserves, but the sector has remained underdeveloped, overshadowed by the much larger crude oil industry.
It has declared 2020 the "year of gas" in the hopes that it can monetize gas resources that are still often burned at the well, a process known as "flaring" that environmentalists say creates a health hazard and contributes to global warming.
The latest move could allow for more connectivity within Nigeria's often-fractured gas infrastructure, enforcing the right for third parties to access pipelines on regulated terms.
The new code will "drive gas commercialization" and apply to all contracts between pipeline operators and users, said Sylva, speaking at the Nigerian International Petroleum Summit in Abuja.
The government hopes that will make the gas sector more appealing to investors, at a time when Nigeria has few funds to spare for pipeline infrastructure.
The goal is "open and competitive access to Nigeria's gas infrastructure", Sylva said, adding that all existing agreements with pipeline operators must migrate to the new framework within six months.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments