Press Statement: Federal Executive Council Approves The National Gas Policy
The Federal Executive Council (FEC) Meeting held on Wednesday 28th June, 2017 in Abuja, ended with a major win for Nigeria’s Oil and Gas Sector as the cabinet meeting presided by Ag. President Yemi Osinbajo, approved the National Gas Policy. The Honorable Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu while speaking at the fifth Triennial National Delegates’ Conference of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), disclosed that the National Gas Policy was approved following his presentation.
He stated that Nigeria needs major changes in policy to make gas a hub of the Nation’s economy. He highlighted the need to have a stream of revenues between petroleum and gas in order to see an improvement in the Nation’s economy and leverage on opportunities for gains from the oil and gas sector.
This policy document builds on the policy goals of the Federal Government for the gas sector as presented in the 7 Big Wins initiative (www.7Bigwins.com) developed by the Ministry of Petroleum Resources and the National Economic Recovery & Growth Plan (ERGP 2017 – 2020).
The Policy articulates the vision of the Federal Government of Nigeria, sets goals, strategies and an implementation plan for the introduction of an appropriate institutional, legal, regulatory and commercial framework for the gas sector. It is intended to remove the barriers affecting investment and development of the sector. The policy will be reviewed and updated periodically to ensure consistency in Government policy objectives at all times.
The gas policy intends to move Nigeria from an oil-based to an oil and gas-based industrial economy which will be driven by the core principles as shown below:
- Separate the respective roles and responsibilities of government and the private sector
- Establish a single independent petroleum regulatory authority
- Implement full legal separation of the upstream from the midstream
- Implement full legal separation of gas infrastructure ownership and operations from gas trading
- Realise more of the LNG international downstream value
- Pursue a project-based, rather than a centrally-planned domestic gas development approach
- Make a strong maintenance and safety culture a priority
- Implement international best practice for environmental protection
- Establish strong linkages with electric power, agriculture, transport and industrial sectors
- Establish payment discipline throughout the energy chain
- Honour stability of contract terms
- Ensure security of assets
- Ensure compliance with the Nigerian Content Act.
The main aspects of the recently approved National Gas Policy covers:
- Governance (Legislation and Regulation)
- Industry Structure
- Development of Gas Resources
- Building Gas Markets
- Developing National Human Resources
To download a copy of the approved National Gas Policy, Click here