Gail among 15 companies short-listed by Nigeria for gas sector investment

Twelve foreign companies, including Gail India, along with three Nigerian firms have been shortlisted as prospective investors in Nigeria's vast gas sector, according to the head of state-run Nigerian National Petroleum Corporation (NNPC), Mohammed Barkindo.

"About 46 companies expressed their interest. We have carried out due diligence and come to a manageable level of 15 which we have invited today," he said on the sidelines of a meeting called to promote understanding of the country's massive gas potential.

Others in the list of prospective foreign investors include Russia's Gazprom Oil and Gas, E.ON Ruhrgas AG of Germany, BG Group Limited and Centrica Energy, both of Britain, Gas Natural SDG SA and Union Fenosa of Spain and units of Shell and Chevron, Korea Gas Corporation Limited and PTT Plc of Thailand.

Minister of state for energy H Odein Ajumogobia has called for the establishment of more refineries in the country. He said the government plans to identify investors who can lead the way in "unlocking the huge gas potential that exists in Nigeria".

He said involvement of foreign companies has become necessary because the combined capacities of the three existing ones in Kaduna, Warri and Part Harcourt cannot meet the local demand for petroleum products.

He pointed out that government's acknowledgement of the legitimacy of claims and struggle by the people of the Niger Delta, was a huge step towards ending the crisis in the area, which has hampered smooth production of crude oil in the country.

He explained that the federal government has been engaged in open dialogue with various groups including militant groups, to understand their grievances so that government could articulate a programme towards developing and rebuilding the region.

He said that government would work out a gas policy that would make the domestic use of gas important.