Oil Companies Can’t Meet Gas Flare-out Deadline

No Comments » February 21st, 2008 posted by // Categories: Energy Development Project



 

THENATION

Oil companies can’t meet gas flare-out deadline
22/2/2008

 

 

International oil and gas companies operating in Nigeria may not meet this year’s deadline to end gas flare, a top oil executive has said.

 

Mr Fred Nelson, Chairman and Managing Director of Chevron Nigeria Mid-Africa Business Unit, told newsmen in Abuja that there was more to the gas flare-out deadline.

“I think that 2010 is a better date to achieve what we need. We (oil companies) need liquefied gas for other operations and projects.

“We need more time to set what we need on ground and organise to end flare,” Nelson said, adding that the companies required to make an investment of more than $5 billion to end the gas flare.

In another reaction, Nelson said that he only read from the papers the deadline said to have been issued to oil companies by the Federal Government to pay penalties for defaulting on gas delivery.

Unconfirmed reports had stated that oil operators stand the risk of paying $3.50 dollars per cubic metre of undelivered gas.

But Nelson said: “The said deadline is on the liquefied natural gas (LNG) and not the domestic gas (LPG).

“We have recommended to the government ways to improve the situation .”

For Chevron, he explained, “we use as much gas as we need in our facilities; for production, for lifting and what remains, we send to the pipeline .”

Nelson stated, however, that its pipeline had since been vandalised since two years.

He noted that about $3 billion investment would be required for the pipeline project.

He said that the government, through the NNPC, was the company’s major partner in all its gas-related projects.

They are the Escravos Gas Plant (EPG3), Escravos-Gas- to-Liquid (EGTL) project, Olokola LNG, the West African Gas Project (WAGP) and Agura Power Generation Project in Lagos.

The Chevron boss noted that sourcing funds to finance joint venture operations was a major challenge.

http://www.thenationonlineng.com/dynamicpage.asp?id=45668

 

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