Investor Presentaiton

DIAGNOSIS OF THE GAS SECTOR Structural Weakness - Inflexible Structure ■ Oligopolistic structure of the Gas market Nigerian gas market is control by few major players ■ Vertical integration is another key feature of the gas market ☐ ☐ Essential facilities such as gas plants and pipelines are controlled by the largest incumbents. Government owned NNPC/NGC control the downstream sector and Shell Operated Joint Venture controlled the upstream sector of the gas market. ■ Huge sunk costs and several long term gas supply agreements Because of the huge Capital required to develop gas, long term supply agreements with payment guarantees are required to ensure sustainable supply Bankable commercial agreement is key to the development of domestic market ■ Barriers to entry into the gas market in Nigeria There is no third party access rules currently in place Some players do not have access to the gas market Downstream Gas Bill will address this when passed The current structure of the Nigerian gas sector is not robust enough to cope with the sudden increase in demand

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