An indication has emerged that the decision of the government to implement the Nigerian Gas Transportation Network Code (NGTNC) will propel the gas prices to be determined by market forces soon.
The Deputy Director, Gas Monitoring and Evaluation, Department of Petroleum Resources (DPR), Antigha Ekaluo gave the hint, while speaking against the backdrop of the upward review of the prices of gas to the power generation firms, fertiliser, methanol and other petrochemical industries, adding that the forces of demand and supply are going to determine the prices of natural gas to the users soon.
“When the implementation of the code, which is expected to ensure transparency in the gas industry and further ensure fair and non- discriminatory access to the gas industry comes into effect, there would be a paradigm shift from a government regulated gas industry to a market regulated one. At a point, it will no longer be a case of for instance, a power firm must buy 1,000 cubit of gas at the recently fixed price of 2.50 dollar. The market would be predicated on the functionality of the supply and demand”, he said.
He explained that globally, market forces are governing the operation of the power sector and other sectors and predicted that Nigeria will definitely join countries that have chosen that path in the next few years.