IBADAN, Nigeria (Dow Jones)
Nigeria approved Wednesday the beginning of a selection process for investors interested in building new gas infrastructure in the country.
The selection process is part of a Gas Master Plan, which guides future investment in the gas sector and approved by the government in February.
Emmanuel Odusina, minister of state for gas, said the plan's blueprint envisages the creation of three domestic processing facilities - at Akwa Ibom/Calabar in the eastern Niger Delta, Obiafu near Port Harcourt and at Warri/Forcados in the western Niger Delta.
He said the blueprint delineates three franchise areas around the central processing facility, adding that only government-licensed investors would be allowed to develop and operate the facility.
Nigeria's gas reserves are estimated at 184 trillion cubic feet, the seventh-largest in the world. The country exports nearly 3 billion cubic feet a day but currently supplies its domestic market with only 0.5 billion cubic feet a day.
Lack of government regulation has seen gas diverted for export rather than providing gas supplies to local industries. President Umaru Yar'Adua has said he wants to change this so that the domestic market would get priority over exports.
Information and Communications Minister John Odey said that when the new infrastructure is in place, Nigeria would have sufficient gas for domestic use and would also eliminate flaring in oil-producing areas.
Nigeria held road shows in May in its capital Abuja, London and Singapore to explore the investment opportunities in the country's gas sector.
The energy ministry said the aim of the road shows was to meet key industry decision makers, establish contacts with other interested investors and gain clearer insights into the opportunities for investment in the Nigeria gas sector.
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