The Minster of State for Petroleum Resources Dr Ibe Kachikwu has identified market volatility, increasing competition and price war as key challenges facing the gas industry in general.
This is contained in a statement by Nigerian National Petroleum Corporation (NNPC) Group General Manager, Group Public Affairs Division Mr Ohi Alegbe in Abuja on Monday.
The statement said that Kachikwu who said this while speaking at the 17th Ministerial Meeting Gas Exporting Countries Forum GECF in Tehran, also identified escalating cost of infrastructural development as a bane of the gas industry.
Kachikwu, who is also the President of GECF said that volatility had brought much uncertainty and instability to the market while affecting decisions on investment for long term supply of gas.
He said that the increasing competition occasioned by the surge in new gas producers has led to a price war at a time when the cost of infrastructure development was escalating.
He said that the developments in the industry were setting the stage for more challenges for the industry and GECF member countries in the future.
He, however, cautioned against reacting to the current challenges by failing to invest in the industry.
He said that the current challenges would be surmounted while also assuring that the market would rebound given the world’s need for energy and the environmental credentials of gas as the cleanest hydrocarbon fuel.
Commending the forum for the success it has achieved since its inception in 2001, the GECF President urged member countries to continue to give the forum the required support to make it realise its potentials.
He paid tribute to the government and people of Iran for hosting the 3rdSummit of the GECF Heads of State and Government.
“It was a great achievement for the GECF that it was able to hold three successful summits within a period of five years, 2011 in Doha, 2013 in Moscow and 2015 in Tehran” he said.
The statement further revealed that the Forum announced the re-appointment of DrHossein Adeli, as GECF Secretary General for another period of two years.
It said that Adeli, an Iranian professor of economics and former Governor of the Iranian Central Bank had competed for the position with Nigeria’s Ambassador Shuaibu Adamu Ahmed, a diplomat, Chartered Accountant and Financial Consultant.
It also said that the minsters appointed Dr Mohammed Bin Saleh Al-Sada, Minister of Energy of Qatar, as President of the Ministerial Meeting from Jan. 1 until Dec. 31, 2016.
It added that Bijan Namdar Zanganeh, Minister of Petroleum of Iran, was also appointed as Alternate President for the same period.
It said that the GECF summit was attended by nine Heads of State and Governments of the forum’s member countries and five representatives of other member and observer countries.