The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigeria LNG Limited (NLNG Limited) have agreed to rev up their collaborative efforts to boost domestic gas supply amid rising demand.
The Chief Executive of NUPRC, Oritsemeyiwa Eyesan, at the weekend hinted that the commission was intensifying regulatory reforms to support the government’s gas agenda, with a strong focus on increasing domestic utilization.
This is even as the NLNG is set to commit 100 per cent of its LPG production to the local market.
In a statement signed by the Head, Media and Corporate Communications of the NUPRC, Eniola Akinkuotu, the Chief Executive gave the hint when the Managing Director of NLNG Limited, Mr Adeleye Falade, paid a courtesy visit to the commission in Abuja.
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Eyesan described the visit of the NLNG boss as timely, noting that since December the commission has been working on its regulatory reforms to align with provisions of the Petroleum Industry Act (PIA).
She said: “We are deliberately repositioning the Commission as a business enabler. Through our monthly stakeholder engagements, we X-ray industry performance and resolve issues proactively to ensure they do not escalate.”
The NUPRC boss attributed the recent improvements in investor confidence in the hydrocarbon resources industry to the government’s responsiveness to industry concerns, which are already translating into increased final investment decisions by investors.
On the nation’s Nigeria’s gas agenda, Eyesan maintained that the Federal Government’s ‘Decade of Gas initiative’ had been yielding desired results, adding that “the Decade of Gas is not aspirational; it is a practical framework for expanding domestic utilisation while strengthening export capacity.”
To fully achieve the objectives of the initiative, Eyesan charged industry operators to complement current government’s efforts with a stronger commitment to performance and compliance.
She said: “As government continues to be responsive, operators must demonstrate reciprocity through performance, compliance, and investment discipline.”
In his remarks, the Managing Director of the NLNG, harped on the importance of collaboration across the upstream value chain as a strategic option to sustain gas availability, especially for the domestic gas market.
Falade explained that rising local demand for cooking gas had reshaped NLNG management’s supply strategy with focus on the demand market.
He said: “Today, 100 per cent of our LPG production is dedicated to the domestic market, not due to reduced output, but because demand has expanded significantly.”
The industry expert expressed optimism that the ongoing Train 7 project would significantly boost the nation’s gas production capacity
Specifically, he hinted that the Train 7 would come on stream next year and increase the NLNG’s production capacity by about 35 per cent, thereby positioning it to surpass both domestic gas supply and export volumes.
