Pengassan Advocates Integrated Approach to Gas Development
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called for an integrated national approach to gas development in Nigeria.
PENGASSAN said the move should encompass upstream
supply, processing facilities, pipelines, storage, LNG, LPG and CNG infrastructure, alongside commercially sustainable gas pricing, bankable offtake arrangements and creditworthy customers.
The concern by Pengassan is embedded in the communique issued and signed by Comrades Engr. Festus Osifo and Jerry Amah, PENGASSAN President and General Secretary respectively at the end of a 3-day Energy and Labour summit held at the Transcorp Hilton Hotel in Abuja.
The communique which was read by the outgoing Pengassan President Comrade Engr. Festus Osifo noted that Nigeria possesses enormous gas resources, with over 215 TCF of proven reserves, but continues to face significant challenges in converting these resources into reliable energy, industrial growth and economic prosperity.
The Summit there urged accelerated utilisation of gas for power generation, manufacturing, transportation, fertiliser, petrochemicals and domestic cooking, while reducing routine flaring and methane emissions and converting otherwise wasted gas into economic value.
On regulatory certainty and investor confidence, the summit acknowledged the Petroleum Industry Act (PIA) 2021 as a significant milestone in the reform of Nigeria’s petroleum industry, but however observed that the long-term capital required for oil and gas development depends not only on the existence of laws and regulations, but on their predictability, durability, transparency and consistent application.
It therefore called for greater stability in Nigeria’s fiscal and regulatory environment and urged government and regulatory institutions to minimise abrupt policy changes and ensure adequate stakeholder consultation before material changes are introduced.
Pengassan also called for smarter regulations that embrace technology, improved coordination among regulatory and government institutions to eliminate overlapping mandates, repetitive approvals and conflicting directives, thereby reducing Nigeria’s cost premium and improving its competitiveness for global energy capital.
It also emphasised that regulation should protect Nigeria’s national interest, workers, communities, investors, safety and the environment while simultaneously enabling legitimate businesses to invest and operate efficiently.
It therefore called for smarter and outcome-driven regulation, supported by digitalisation, clear timelines, faster approvals and transparent processes. Regulatory effectiveness should ultimately be measured by its ability to facilitate responsible investment, increase production, generate revenue, protect workers and create sustainable national value.
“The Summit welcomed the commitment of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to continually review regulations to determine whether they are achieving their intended outcomes and to maintain transparent and time-bound licensing processes”, said Comrade Osifo while reading the Communique.
The communique also
called for sustained policies and investments to expand Nigeria’s domestic refining capacity and reduce the economic inefficiency of exporting crude oil while importing significant volumes of refined petroleum products and emphasized the need to protect refineries (such as Dangote Refinery, Waltersmilth refinery, etc) within Nigeria jurisdiction.
It noted that Nigeria must progressively retain more value from its petroleum resources through domestic refining, petrochemicals, gas processing and other value-adding activities capable of generating employment, conserving foreign exchange and stimulating industrial growth.
The Summit brought together representatives of the Federal Government, regulators, national and international oil and gas companies, organised labour, investors, industry professionals and other stakeholders to examine the regulatory, commercial and labour conditions required to unlock sustainable growth in
Nigeria’s oil and gas industry.
