10-08-04

Nigeria and 13 other natural gas producing countries in the world have formed a cartel known as Gas Producing and Exporting Countries (GPEC) to explore opportunities and influence gas sales price globally.

This is to ensure that member countries maximise benefits of gas for socio-economic development of their nations. Members include Algeria, Brunei, Egypt, United Arab Emirates, Iran, Libya, Qatar, Trinidad and Tobago, Venezuela, Indonesia, Malaysia, Oman and Russia.

Dr Edmund Daukoru, presidential adviser on petroleum and energy matters, said the body though still in its infancy, has the potential to become as influential as the Organisation of Petroleum Exporting Countries (OPEC). He explained that the body was born primarily to explore opportunities that can accrue to member countries through synergies and cooperation in their relationships with customers, international gas companies and other stakeholders.

"Government has taken the efforts to derive the most value to the nation from our gas onto the international stage", he said.

Daukoru said Nigeria's unique gas resource position within the African and West African sub-region offers new opportunities for piped gas not only to avail the developing market opportunities within the region. He said the exploitation of gas also offers an instrument for regional integration, cooperation and development in countries of the sub-region.

“To seize the opportunities offered by our proximity to the Atlantic Basin markets and its growing gas demand, our priorities should be to embark on a dedicated exploration and development of non-associated gas in a systematic manner based on full cycle economics to meet the demands of a growing world market”, he said.

The adviser said the federal government has initiated necessary steps to make the gas business stand on its own without undue reliance upon substantial subsidies from oil in order to be viable.
One of such alternatives is the gas-to-liquids technology, which opens up an entirely new market with huge potential to be realised from providing ultra-clean fuels.

He said the initiatives being addressed by his office require a re-evaluation of the commercial framework based on full gas value chain economics, which would at the same time, incorporate sufficient flexibility to achieve a win-win arrangement for the investor and the nation on new gas schemes.

“Along with Algeria, which has played a key role in articulating the vision of GPEC, the growing membership of this body would enhance the federal government’s drive to earn equal income from gas as in oil by 2010”, he said.

Source: LiquidAfrica