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September 03, 2010, 08:36:37 PM
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News: Gas price raised to boost investment, power sector The Power Holding Company of Nigeria (PHCN) will pay oil companies more for their gas to encourage investment and boost supply capacity, as Federal Government announced a new gas to power price regime which would see an increase from the current twenty cents per million metric btu to one dollar per million British thermal units (mmbtu) by the end of this year. And although industry experts welcomed the decision, they said the new price regime is still not economic enough and urged government to free up the price mechanism and set up a regulatory agency to monitor and regulate gas price. According a Reuters report, gas demand from Nigeria’s power sector is expected to grow to 2.5 billion cubic feet per day by 2014 from 700 million currently in sub-Saharan Africa’s second biggest economy. "This is significant growth requiring major growth in investment by suppliers over the next few years," Petroleum Minister Diezani Allison-Madueke told reporters. Businessday Newspapers |
