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Business News of Saturday, 27 November 2021

Source: nigerianobservernews.com

Obaseki urges policies to attract investment in gas sector

Godwin Obaseki, Edo State Governor Godwin Obaseki, Edo State Governor

The Edo State Governor, Mr. Godwin Obaseki and stakeholders in the Liquefied Petroleum Gas (LPG) sector have called for targeted policies to attract more investments into the sector to maximise Nigeria’s gas resources for national development.

The stakeholders noted that despite its huge potential, the sector was being plagued by a poorly regulated retail market, shortage of LPG storage facilities, inadequate infrastructure, logistics inadequacies, insecurity and Foreign Exchange (Forex) crisis.

They spoke at the 11th Nigeria Liquefied Petroleum Gas Association (NLPGA) International Conference and Exhibition, held virtually, with the theme, “Market Growth and Fiscal Regulations: Rethinking the LPG Supply Gaps Amid the Challenging Regulatory Environment.”

Obaseki said Nigeria has proven gas reserve of about 206TCF and it was imperative that the country made critical decisions that would enable industrialisation and economic growth through gas.

Obaseki, represented by the state’s Commissioner for Mining, Oil and Gas, Engr. Ethan Uzamere, said the value and investment to the sector could be increased with the right policies and regulatory framework.

He said the state government recognized the importance of gas and was harnessing it for electricity supply through the Ossiomo Power Plant, which was currently supplying power to government buildings and street lights in Benin City.

According to him, “Given this impressive statistic, work to scale up the project is currently ongoing. We are planning on selling power to clients who are willing to buy.

“By this initiative, we have put in place a policy that will drive ease of doing business and open up the space for investors to come in and invest to ensure the growth of the market.”

On his part, Managing Director, Nigeria Liquefied and Natural Gas (NLNG) Ltd., Dr. Phillip Mshelbila said the passage of the Petroleum Industry Act (PIA) would help attract investment by providing incentives for investors.