Gas-to-Power and the Role of Gas Compression in the Nigerian Energy Industry: Current Challenges, Strategies and Solutions for Sustainable Development

Abstract

Every industry in every country of the world is dependent on electricity to remain operational; therefore it is not a surprise that the frequent power cuts are having devastating effects on Nigeria’s industrial sector. The electricity shortage in Nigeria is undeniably related to many of the key issues occurring in Nigeria today. The underlying causes of power shortages and regular interruptions – black-outs and brown-outs – vary from failures to bring on new capacity to coincide with the demands of economic growth, low investment and structural issues. In this paper, the writer presents current challenges facing the gas compression industry in Nigeria. These include security concerns, supply chain issues, ‘big crew change’, corruption, business environment and infrastructural issues, poorly managed construction contracts, pipeline vandalization, gas supply disruption concerns, the absence of institutional framework and in recent times oil price volatility. Dealing with these issues, the writer believes, will involve the provision of basic amenities in the oil and gas communities, competency development and improvement of supply chain and construction contractors personnel, training and technology conferences to address the ‘big crew change’, pragmatic enforcement of the law against corruption, appropriate monetary and fiscal terms to attract foreign direct investment, involvement of indigenous oil and gas companies, revival of moral awareness of the populace, formation of regional gas companies, development of fallow wells, adequate risk assessment by operators and service providers, quick passage of the Petroleum Industry Bill (PIB) and an enduringly strong political will on the part of the government.