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Major operators in the downstream sector have stated that a new agenda that aligns with the development and utilisation of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, would be pursued under the Petroleum Industry Act (PIA) regime as well as, in line with the transition goal.
The Major Oil Marketers Association of Nigeria (MOMAN)said the world is changing rapidly and the oil and gas industry has been proven to be one of the most exposed to the winds of change.
The association noted that the period of restrained movements, occasioned by the COVID-19 pandemic, has seen much of the world accelerate their drive towards zero or near zero utilisation of hydrocarbon-based energy sources, a clear indication that the days of hydrocarbons might be fewer than projected.
MOMAN Chairman, Olumide Adeosun, during a chat with journalists to announce his appointment as the new leader of the association, noted that the current hike in the price of LPG is a global concern.
He added that Nigeria does not produce sufficient LPG, hence the spike in the price of the product in the domestic market.
According to him,the Federal Government’s desire to increase nationwide usage of gas is commendable and is an initiative that should be supported and taken advantage of.
Adeosun, the CEO of Ardova Plc, disclosed that the operators were in talks with the Federal Government on the issue of subsidy, adding that leeway to the removal has been offered to the government and they will ensure proper implementation in a bid to safeguard downstream operations.
“The benefits to expanding our collective capacity in retailing gas extend beyond immediate additions to our bottom-line, as the impact on our environment, our communities, and the larger economy make for a better future for us all.
“We must adapt and evolve to prevent working wide-eyed into extinction. The gains to be had from operating in a PIA reality must be channelled towards pivoting the way we operate. This is the only way we can remain globally competitive.
“Our ability to adapt to the changes being experienced by the energy sector will be closely hinged on our capacity to attract the right kind of capital and expertise to kickstart this evolution. Having the right corporate governance structures is an indicator to investors that our businesses are suitable destinations for capital”, he added.
He also stated the role MOMAN will play during his tenure, saying “My appointment as Chairman of our respected association commences just as the Petroleum Industry Act has been encoded into law, marking the beginning of a new era for the downstream sector. As an association, this means that we must be at the forefront of unravelling the opportunities that come with operating in the free-market structures that have been created by the PIA, whilst continually advocating for changes that positively impact our industry and the economy at large.
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