A Guide to an Investor-Friendly Regulatory Framework in the Gas Industry

Oil & Gas
2147 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp
Proshare

Thursday, March 11 2021   /05:00 AM / By Proshare Research/ Header Image Credit: EcoGraphics


Proshare Nigeria Pvt. Ltd. 


 

Although in some economies the gas industry is deregulated there are subtle regulatory frameworks that serve as a guide to ensure that best-operating standards, pricing, and procedures are adhered to. Analysts note that these regulatory frameworks serve as a guide to facilitate competition and efficiency in the LPG and LNG markets.

 

Some characteristics of investor-friendly regulations include transparency, clarity of roles/responsibilities and ease of doing business, minimal complexity, clear and consistent monetary policy, etc. Ensuring that the gas industry operates at an optimum level of efficiency requires regulations that should seek to facilitate participation by local stakeholders such as communities, local government, and other entities. Also, the regulatory framework should ensure that there is transparency, clarity of roles, and ease of doing business is being facilitated.

 

Investors are concerned with the ease of doing business, how easy is it to register their businesses, tax laws applicable, and the ease of repatriating their funds. Hence, the government regulatory framework should create a conducive environment for gas project investment e.g., the government must provide the necessary assurance that movement of profit from invested capital for gas projects or LNG projects are not subjected to restrictions as repatriation of profits must be allowed if countries want to attract FDI or investors for their gas resource development.

 

Also, government regulations should allow multiple options for developing gas infrastructure, either by government, public/private partnership (e.g., build-operate-transfer (BOT)), or private investors. The government should as much as possible ensure that in a bid to protect consumers from exploitation its regulations do not stifle investment incentives in the country. Therefore, regulations must carefully balance the need to raise public sector revenue with the challenge of layering additional costs on investors and squeezing profit margins or discouraging demand as a result of higher retail prices (see Illustration 14).

 

Illustration 14: Features of Effective Regulatory Frameworks

Proshare Nigeria Pvt. Ltd.



Proshare Nigeria Pvt. Ltd.


 

Downloadable Version of Memo to the Market: PPPRA and the Nigerian Gas Market, Avoiding a Robinhood

1.   Full Report: Memo to the Market: PPPRA and the Nigerian Gas Market, Avoiding a Robinhood - Mar 02, 2021


Proshare Nigeria Pvt. Ltd.


Related News

1.      The Case for an Investor-Friendly Gas Market

2.     PPPRA: The LPG Onslaught

3.     Gas Market Deregulation: The Nuts and Bolts

4.     The PIB and the Gas Sector - Shaping a New Model

5.     The Nigerian Gas Market: The LPG Mind Shift

6.     The New Gas Reality

7.     PPPRA and the Nigerian Gas Market: Avoiding a Robinhood


Proshare Nigeria Pvt. Ltd.


Related Link

1.      NLPGA v PPPRA - An Originating Summons in the Federal High Court of Nigeria Holden at Lagos  - Jan, 2021


Proshare Nigeria Pvt. Ltd.


Related Videos

1.      Why Full Deregulation is Vital for Nigeria's Oil and Gas Sector

2.     Privatization of NNPC Refineries, Will Attract More Investments into the Oil and Gas Industry - Tominiyi Owolabi

3.     Decades of Nigeria's Oil and Gas Sector: Way Forward

4.     Why Gas Should be Leveraged as A Pivot for Diversifying Nigeria's Revenue - Bambo Ibidapo-Obe

5.     How Oil and Gas Zones can Support Nigeria's Economic Growth


Proshare Nigeria Pvt. Ltd.


Related News - PMS Pricing

1.      Subsidy Removal and Cost-Reflective Tariff: Tough Decisions to be Made

2.     Possible Increase in PMS Price, Stakeholders Call for Fixing of the Non-Functional Refineries

3.     Uncertainty Over PMS Price - A Clear Indication Inflation Concerns Could Linger

4.     Commencement of Dangote Refinery's Production Would Improve Nigeria's Current Account Balance

5.     FG Inaugurates Technical Committee On PMS Pricing Framework

6.     FG: Dangote Refinery Will Sell Petrol at International Price

7.     Is PMS Price Deregulation for Real or a Mirage?

8.     NLC Communicates the Decision of Its CWC on Hike in PMS Pump Price and Electricity Tariff

9.     PPMC Increases Ex-depot Price of PMS to N151.56 per Litre

10.  Policy Directions on PMS, Tariff Hike, Gas and Stamp Duties and Implications on Households

11.   PPPRA Releases Advised Price for PMS for the Month of July 2020; Raises Pump Price to N140

12.  PPPRA Removes Existing PMS Price Cap; Commences Market Based Pricing Regime

13.  The Conundrum in the Retail Pricing of PMS

14.  Petrol: An End to the Subsidy Regime?

15.  The Deregulation Farce; What's The Way Forward?

 


Proshare Nigeria Pvt. Ltd.


Related News - Previous Oilprice Intelligence Report 

1.      Brent Crude Holds Gains Above $65 - OIR 230221

2.     Brent Crude Oil Price Falls Back Below $64 - OIR 190221

3.     How Much Higher Can Oil Prices Go? - OIR 120221

4.     Bullish Sentiment Takes Over Oil Markets - OIR 090221

5.     Brent Crude Surges Towards $60 - OIR 050221

6.     Oil Prices Hit 1-Year High - OIR 020221

7.     Oil Prices Hit 1-Year High - OIR 020221

8.     New Vaccine Hopes Boost Oil Prices - OIR 260121

9.     Oil Price Rally Paused By Chinese COVID Concerns - OIR 260121

10.  Energy Shares Plunge as Oil Rally Halts - OIR 220121

11.   Oil Demand Fears Continue to Weigh on Markets - OIR 190121

 

Proshare Nigeria Pvt. Ltd.



CMOs/Reports on Oil and Gas Sector

1.      Oil and Gas: Working the New Normal in the Time of a Pandemic

2.     The Nigerian Oil and Gas Industry Update: Urgent Need for Reforms

3.     Oil and Gas Update: Downstream Oil and Gas at a Crossroads

4.     Nigerian Oil and Gas Industry Update

5.     Oil and Gas Sector Records 1 Gainer to 7 Losers; Index Dipped By -19.83% YTD

6.     NCM2020 (20) - Oil and Gas Sector - SEPLAT Tops On EPS and PAT Margin As Mobil Tops on ROE

7.     Nigerian Oil And Gas Sector- Q3 2019 Earnings Preview

8.     The Oil Market, 2020 Black Swan, and A Third Virus Wave 


Proshare Nigeria Pvt. Ltd.


Related News on Oil and Gas Companies Latest Results

1.      CONOIL Declares N1.1bn PAT in Q3 2020 Results, (SP:N19.05k)

2.     JAPAULOIL Declares N91m PAT in Q3 2020 Result, (SP:N1.11k)

3.     ETERNA Declares N194m PAT in Q3 2020 Unaudited Results, (SP:N5.00K)

4.     Ardova Plc Declares N1.9bn PAT in Q3 2020 Result, (SP:N12.65k)

5.     SEPLAT Declares N33.7bn Loss in Q3 2020 Results, Proposes $0.05 Interim Dividend; (SP:N420.00k)

6.     MRS Declares N881m Loss in Q3 2020 Results, (SP:N12.45k)

7.     TOTAL Declares N500m PAT in Q3 2020 Results, (SP:N112.20k)

8.     RAKUNITY declares N37m Loss in Q3 2020 Unaudited Results, (SP:N0.50k)

9.     OANDO Notifies of Delay in the Publication of its Q3 2020 Financials

10.  OANDO Declares N13.06bn PAT in Q3 2019 Results (SP:N3.40k)

 

Proshare Nigeria Pvt. Ltd.


Related News on PIB

1.      NNRC Encourages NASS to Prioritize The PIB

2.     Inside Nigeria's 2020 Petroleum Industry Bill

3.       PIB Will Ensure Nigerians Benefit Optimally from Oil and Gas Resources - Ahmed Lawan

4.     PIB: Will the Jinx be Broken This Time Around?

5.     Petroleum Industry Bill - Is There Light At The End of The Tunnel?

6.     Nigeria to Draft Petroleum Industry Bill from Scratch

7.     FG Explains Why Presidential Assent Was Withheld For Petroleum Industry Governance Bill

8.     House of Representatives Passes Petroleum Industry Governance Bill

9.     Senate Passed Petroleum Industry Governance Bill

10.  Analysing the Petroleum Industry Bill

11.   Petroleum Industry Bill - Senate To Receive Final Report on PIGB April 25

12.  Bukola Saraki's Remarks at Petroleum Industry Bill Public Hearing

13.  The New Petroleum Industry Bill and Taxation of Petroleum Products in Nigeria

14.  FG may effect changes in Petroleum Industry Bill

15.  PIB Will Be An Enabler For Increased Investments In The Oil and Gas Sector - Bambo Ibidapo-Obe

16.  Power Sector: How PIB/Deregulation considerations dampens interest in mini refineries


 

Proshare Nigeria Pvt. Ltd.



Proshare Nigeria Pvt. Ltd.



Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP