The Federal Government will require gas producers to set aside a portion of their output for the domestic market under a new supply and pricing regulatory framework due to be announced soon, President Umaru Yar’Adua has said.

The plan is part of a broader reform programme for Nigeria’s gas sector which aims to improve infrastructure, clarify the legal framework and shift the focus from exports to domestic consumption, Yar’Adua said at an industry conference.

The president olso confirmed that only 36 per cent of extracted gas was being flared now, compared with 100 per cent a few years ago.

"This new regulation, which takes effect soon, mandates all operators in the country to set aside a pre-determined amount of gas reserves and production for the domestic market," Yar’Adua said in a speech.
"It also outlines the national gas pricing policy, a sector-based pricing structure aimed at stimulating the growth of both the power and industrial sectors," he said.

He gave no further details or figures.
The previous administration, under former President Olusegun Obasanjo, had also spoken about reforming the gas sector to make better use of Nigeria’s proven gas reserves of about 180 trillion cubic feet — the seventh-largest in the world.