Investor Presentaiton
GAS SUPPLY CHALLENGES
Other Commercial Issues
▪ Revenue Securitization
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History of non-payment for gas in domestic market – mainly from
government parastatals such as PHCN, ALSCON*, DSC* etc.
■ Created a drag in IOC willingness to invest heavily in supply unless
adequate interventions on revenue security are provided
Bankable Agreements
■ In view of the size of capital investments required to supply, gas
agreements are critical and need to be enforceable
■ Current domestic market is not mature and agreements need to be
improved to enable investor confidence
With the power sector, re-structuring has created lack of clarity on who
the counterparties to an agreement are
Other challenges mitigating against sustained supply growth are lack
of confidence in ability of buyers to pay and the perceived weakness of
GSPA's in terms of protection they offer the supplierView entire presentation