The Nigerian National Petroleum Corporation, NNPC has released a statement, in Abuja after the Third Summit of Heads of State and Governments of the Gas Exporting Countries Forum (GECF) member countries in Tehran, Iran. In the Statement, President Muhammadu Buhari assured the GECF of Nigerias continuous support as it struggles to surmount the challenges that the global oil and gas industry is facing. He noted that trying times call for more cooperation and coordination among member countries.
Emmanuel Ibe Kachikwu, President GECF and Minister of State for Petroleum Resources, identified market volatility, increasing competition, price war and escalating cost of infrastructure development as the key challenges facing the gas industry in general and the GECF in particular. The federal government however warned oil companies against halting their investments in the gas industry in response to the challenges brought about by the volatility in the industry. Kachikwu noted that volatility has brought so much uncertainty and instability to the market thus affecting decisions on investment for long-term supply of gas; adding that increased competition occasioned by the surge in new gas producers has led to a price war at a time when the cost of infrastructure development is escalating.
These developments, he argued, are setting the stage for even more challenges for the industry and GECF member countries in the future and cautioned against reacting to the current challenges by failing to invest in the industry; the minister assured that the current challenges will be surmounted and the market will rebound given the worlds need for energy and the environmental credentials of gas as the cleanest hydrocarbon fuel.