The Gas Aggregation Company Nigeria (“GACN”) attended a gas sensitization retreat organised by Revenue Mobilization Allocation and Fiscal Commission(“RMAFC”) in Bauchi state at the Lt. Gen Y.T Buratai Conference Hall at the command guest house from Tuesday,15th November to Friday, 18th November 2022. The theme of the retreat was “NATURAL GAS AS A PANACEA FOR ECONOMIC GROWTH AND INDUSTRIAL DEVELOPMENT”.
Hon. Patrick Mgbebu, Chairman, Gas Monitoring Committee (GMC) opened the retreat by emphasising the need to enlighten members to fully understand the gas sector so as to contribute to nation building.
The Executive Governor of Bauchi State, was ably represented by Senator Baba Tela, who drew the attention of the Commission to intervene on one of the Kolmani River oil wells which is at the boundary of Bauchi and Gombe States. He requested that the dispute be resolved by the National Boundary Commission (NBC) and the Commission more amicably. He added that the State would soon establish an oil service company which will make the indigenes of the State benefit.
GACN represented by Dantala Wright and Ruqaiyah Saidu Abubaker presented a paper titled GAS UTILISATION EXPANSION FRAMEWORK AND OTHER GAS SECTOR OPPORTUNITIES to further buttress the commercial opportunities, collaboration and engagement GACN have created over the years in the domestic market, which have laid the foundation for the AKK states and GACN to collaborate on certain gas engagement utilisation to the various states, bearing in mind the post PIA mandates.
The following five (5) papers were presented at the retreat:
- Bauchi State’s Oil and Gas Development Plans Vis-a-vis the Exclusivity of the Sector by Hon. Aminu Hammayo (Magatakardan Misau), the Bauchi State Commissioner Ministry of Budget and Planning;
- Harnessing Nigeria’s Proven Gas Reserve for Economic Development by Engr. Joseph Ogunsola (NUPRC);
- Harnessing Nigeria’s Flare Gas for Economic Growth and Development, by Engr. Gbenga Komolafe (NUPRC);
- Gas Utilisation Expansion Framework and other Gas Sector Opportunities by Dantala Wright (GACN);
- Blocking Revenue leakage from the Gas Sector by Dieter A. Bassi, PHD(NEITI)
Following the presentations made, observations were discussed and analyzed. The following were observed:
- Nigeria has the highest proven gas reserves in Africa.
- In harnessing the abundant gas resources for enhancing domestic gas utilization and revenue generation, the following initiatives are used; Nigeria Gas Master Plan, 2008; National Gas Policy of 2017; Natural Gas Expansion Programme of 2020 and; Petroleum Industry Act (PIA), 2021;
- NNPC returned to start drilling exploratory wells in the Gongola basin in May 2018 which led to the appraisal of Kolmani River discovery field;
- One of the reservoirs was perforated in 2019 and crude oil started flowing to the well head thereby the gas component was flared to prevent air charge around the rig; and the 3-tiers of Government as well as private individuals can invest in the sector;
Bauchi State is aware of exclusivity of the oil and gas sector as enshrined on the second Schedule, Part I, Constitution of the1999 Federal Republic of Nigeria; which states that the Institutions that are willing to collaborate with the investors in the gas sector to drive the diversification process are: RMAFC, NNPC Ltd, NGMC, CBN, B.O.I, GACN etc.
That there are ongoing projects nationwide that would enhance domestic Gas market development and facilitate an additional power generation capacity e.g. AKK project will inject 2.2Bscf/d of gas/3,600MW;
That the Gas sector is being faced with a lot of challenges such as inadequate statistical data on gas resources in Nigeria, lack of political will in implementing laudable and viable economic policies and programmes, by successive administrations/managers.
Recommendation were also made and pointed out the following:
- The utilization of the nation’s gas resources should be top priority at all levels of the state’s government. Bauchi State, where crude oil and gas has been recently discovered and the private sector which would enhance in driving the diversification process and growth of the national economy.
- That there is the need for both the Federal and State Governments to intervene in mobilizing financial resources by ways of loans, subsidies and other supports to boost investment in the gas sector given the huge financial outlay required for gas projects.
- The State should collaborate and engage with critical stakeholders for increased domestic gas market penetration and utilization. Such stakeholders include GACN, NEPZA, NCDMB, NGC, MAN, NSE, NRC, NPA, Road Transporters, Financial Institutions, etc.
- The State should take note and reflect on the industry reforms that transformed the legal, regulatory, institutional and fiscal framework of the industry which further led to the enactment of the Petroleum Industry Act (PIA) 2021 in order to drive Nigerians and sub nationals’ journey as an oil and gas industrial based economy.