Operators say that for the country to make substantial progress in the power sector, an investment of about $25 billion will be required between now and 2020. The investment, oil and gas experts say, should be channeled to infrastructure development across the gas and power value chain.
Of this figure, they say about $10billion would be required to develop gas fields, procession, and transportation networks. Another $12 billion would be required for power generation and $3 billion for transmission and distribution.
However, an estimated $60 billion investment would be required, if the country is to attain 40 gigawatts (40,000megawatts) of electricity in the nearest future.The country’s current power production level is 4,300 megawatts.
The development of gas fields and the sale of the commodity at affordable prices to investors are essential ingredients to achieving a viable and vibrant power and gas sector, operators in the industry say.
Current domestic gas prices do not cover the cost of development, and investors want the tariff reviewed upward, to encourage more investment, such as would support the power sector.
The price of gas is hindering investment in every segment of the power value chain, operators say.
According to the operators, the investment of $25 billion would guaranty a stable gas-power value chain, which would deliver the required electricity generation to support the country’s development aspirations.