The Federal Government, on Thursday said it has reviewed downward the price of gas-to-power from $2.50/mmbtu to $2.18/mmbtu for domestic supply obligation (DSO). In his remarks at the 2021 Gas Sector Stakeholders’ Forum themed: Optimising the Economic Development Capacity of the Ajaokuta-Kaduna-Kano “AKK” Gas Pipeline Project, in Kano, Minister of State Petroleum Resources, Chief Timipre Sylva, said the decision for the downward review followed a robust negotiation between the Federal Government, Labour and other stakeholders.
“Let me use this medium to announce to this gathering that following the successful negotiation between the FGN and the Organised Labour Unions, and the detailed review of the gas pricing framework in Nigeria, the price of gas-to-power has been reduced from $2.50/mmbtu to $2.18/mmbtu(domestic supply obligation – DSO) with immediate effect. The outcome of the negotiations and review have been communicated to the relevant stakeholders”. Sylva said the completion of the AKK gas project will further enhance government’s drive towards expansion of domestic gas penetration in the country.
According to Sylva “Our successful collaboration and the completion of the AKK in 2023 will significantly enhance Mr. President’s vision and current drive for increased domestic gas utilization as the mainstay for national industrialization, increased foreign investment, government revenue growth and ultimately provide more job opportunities for Nigerians”.
The minister added that the “National Gas Expansion Programme, which was launched in January 2020 is the flagship programme that is focused on ensuring that all these objectives are achieved and that the gains emanating therefrom are sustained”.
He noted that the “Forum is yet another demonstration of the Federal Government’s total commitment to the realization of the objectives underpinning the “Decade of Gas”declaration”.
Sylva recalled that a similar engagement in Owerri, Imo State in 2020 “brought much awakening to the region, leading to increased collaboration between the private sector, respective state governments and relevant agencies for gas commercialisation towards meeting identified energy demands in the area”.