(Ecofin Agency) - The Federal Government of Nigeria this week, approved a National Gas Policy which builds on the policy goals of the government for the gas sector.

According to Idang Alibi, the Director of Press at the Ministry of Petroleum Resources, the policy aims to ease investment and develop the sector.

“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; realize more of the LNG international downstream value; pursue a project-based, rather than a centrally-planned domestic gas development approach,” he said.

The new policy, he added, would be reviewed periodically and updated periodically to ensure it is consistent with government policy objectives at all times.

It should be recalled that the Minister of oil recently announced plans by the country to shift its focus to natural gas production as its oil reserve has been estimated to be exhausted in the next 25 to 30 years. Nigeria’s gas reserves have been estimated to sustain the country’s fuel revenues for 60 more years but significant investments would be needed.

Anita Fatunji