“Gas, the Beautiful Bride of Hydrocarbon” – Anonymous
The recently approved National Gas Policy (the “Policy”) by the Nigerian Federal Government (“FGN”) has thrown up mixed reactions from participants in the Nigerian oil and gas industry (the “Industry”). While some believe that the Policy will move the Nigerian economy from oil to gas, others are cautiously optimistic on the Policy and have identified that certain issues such as gas pricing, infrastructure and appropriate gas flaring penalties, if not properly addressed, may inhibit the success of the Policy.
In this briefing, we have identified six critical factors that will affect the success or otherwise of the Policy. These include:
- Gas Pricing
- Passage of Gas Legislation
- Sufficient Gas-centric Incentives
- Investor friendly Gas Development Agreements
- Compliance with Gas Development Agreements
- Policy Reliability
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