afrol News, 26 September - Nigerian government has ordered oil firms to produce detailed gas production plans to boost gas supplies and ease current shortages, officials have said.

Federal government has directed all major oil companies operating in Nigeria to submit a detailed plan for domestic gas supply before end of October 2008.

Gas Minister, Emmanuel Odusina, said companies must set aside between 280 million and 350 million cubic feet of gas by end of year for domestic use, according to an e-mailed statement from Nigerian National Petroleum Corporation.

"We must prioritize domestic gas supply over any LNG project, since the country needs power," Mr Odusina said.

Nigeria, whose natural-gas reserves of 187 trillion cubic feet are world's seventh-biggest, is also Africa's most populous country and suffers from chronic power shortages.

Mr Odusin said he wanted to see plans to ensure uninterrupted domestic supply of gas for power generation and distribution in the country.

He said president Yar'Adua had expressed concern at apparent disregard by oil firms of an earlier government directive issued in April asking them for their production plans.

"Federal government's policy and regulations on gas supply to the domestic market are not up for discussions or negotiations any more," Mr Odusina said, in a statement, saying despite being issued with obligation, no company has responded with credible supply and detailed work plans.

The country of 140 million people is currently generating only 3,000 megawatts of power, out of an installed capacity of 6,000 megawatts. Parts of country go for days and weeks without power, leaving companies to rely on their own generators.

United Nations and World Bank estimate that gas flaring by oil producing firms in Nigeria wastes close to 2.5 billion cubic feet of gas.

Meanwhile, Nigeria's Foreign Affairs Minister, Chief Ojo Maduekwe, has said illegal oil bunkering will be labelled a criminal activity, an initiative aimed at halting violence that has engulfed Niger Delta region.

"We have also embarked on international initiatives that would help to nip the crisis in the bud. We are looking at the concept of blood oil to ensure there is criminalisation of oil bunkering and use of its proceeds for destructive purposes," he said.

Nigerian has called on international bodies' support to fight oil smuggling which seems to be fueling tensions in Niger Delta.

By staff writer

© afrol News

Related pages and feature

Current afrol News Top Stories