TradeInvestNigeria Staff
Posted on: Tue, 18 Mar 2008
Nigerian president Umaru Yar'Adua is looking for energy companies to invest US$20-billion in the gas sector to ease the country's power supply crisis.
Nigeria is an important supplier of liquefied natural gas (LNG) to the US, Europe and Asia. A new policy is, however, calling for a greater emphasis on the supply of gas to the local market. There are reports that the federal government might require producers to reserve up to 30% of gas for domestic use.
The president plans to keep the amount of LNG exported steady by encouraging an increase in the overall amount of gas produced in Nigeria.
Current frameworks in Nigeria don't make it nearly as profitable to sell gas to the local market rather than exporting it. The president wants to counter this by increasing the local price paid for gas to US$1/mcf by 2009. Exported LNG can fetch more than US$2/mcf.
Gazprom, the Russian energy company, as well as German utility Eon have shown interest to invest in Nigeria's gas industry.
- Investors needed for kerosene and gas stove manufacturing
- Invest in the development of Nigeria's gas infrastructure