Nigeria’s domestic energy price leveler, the Petroleum Equalization Fund (PEF) is positioning its operating structures to play key roles in the prevailing revolution in internal fuel diversification into various gas products in the domestic market.
Executive Secretary, Alhaji Ahmed Bobboi, stated that the agency has taken strategic position to play key roles in the ongoing government’s gas expansion programme and ensure flow of gas along existing and well developed domestic fuel supply management systems to reach rural markets at affordable prices.
“We are also strategically aligned with the National Gas Expansion Programme (NGEP) and the Autogas rollout initiative in efforts to provide alternative fuels (LPG, CNG and LNG) for transportation and domestic utilization in the country,” Alhaji Bobboi stated in a publication by the agency.
He boasted that the PEF has over 45 years experience in managing internal pricing systems, tracking of product supplies and world class technological infrastructure that are all manned by skilled, well trained workforce.
“We are poised to serve the nation in current and new roles within the petroleum industry,” Bobboi assured.
The agency which manages uniform internal pricing for fuel products in the country stated that its existing channels of products distribution could easily accommodate other fuels products in the market to ensure reliable delivery to remote consumption centers at relatively uniform prices.
Head of Corporate Affairs, Dr. Chidi Nnadi, stated in a publication of the agency that the management board of PEF has already put in place plans that will assist the country in deepening gas penetration as the attention has shifted to gas.
He said the National Gas Expansion Programme of the Ministry of Petroleum Resources has brought the new role of PEF into focus as the country moves to displace significant volumes of the premium motor spirit popularly called petrol with various specification of cheaper, cleaner and available gas option.
According to Dr. Nnadi, deploying the logistics facilities already developed by the PEF would play roles in stabilizing the cost of the different products captured in the gas expansion programme as commercial players begin to push market development towards the hinterlands.
“Perhaps, part of the reason why gas is still expensive, is the high cost of its accessories and other issues of logistics,” the agency stated in a publication made available at a conference in Abuja.
“As a an enabler, the thinking in the sector is that PEF(M)B should be encouraged to key into gas pricing to guarantee that gas reaches the hinterland where the use of firewood and charcoal is still very rampant.
“This is because it is on record that PEF(M)B has all the channels and networks to replicate what it has achieved in the distribution of PMS in the country,” the agency stated, adding that it has capacity to guarantee that off-takers take gas to the end user at affordable cost.
The PEF says its role in the gas expansion programme must not be limited to managing uniform pricing. It explained that its operating systems and processes hold potential to guarantee price affordability and enhance businesses for marketers in the urban, suburban and rural settings.
The Oracle Today reports that government escalated its Year of Gas agenda enunciated in 2019 to Decade of Gas in 2020 in order to attain Nigeria’s gas fired industrialization aspiration by 2030. Part of the action agenda includes gas flare elimination at upstream petroleum production sites, channeling of more gas for domestic application and evolution of auto-gas market for transportation.
Department of Petroleum Resources (DPR) declared early in the week that Nigeria’s gas reserves recently rose from 203 trillion cubic feet to 206.53 trillion cubic feet, amplifying the country’s potential to convert potential reserves of 600 TCF to probable and proven reserves.