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Investment opportunities in the Gas Industry as available in Imo State in large and commercial quantities and offers inherent opportunities for would be investors in gas production, transmission and distribution. Interested investors can apply to the Ministry of Petroleum Resources for appropriate licenses to prospect for and produce natural gas. This is a highly capital intensive business and local investors can establish joint venture arrangements with foreign partners to finance such business. The Nigerian Gas Company has almost a “defacto” monopoly in gas transmission but it is open to joint venture proposals from third parties for specific project.

Investors are encouraged to either independently own and operate natural gas distribution system or go into venture arrangements. These distribution companies would purchase gas from Nigeria Gas Company (NGC) at designed “city gates” and distribute same through pipelines to domestic, Commercial and industrial users within certain area. The opportunities here would include the distribution of gas as compressed natural gas (CNG), using tankers or tube traclers to consumers who may not be within the proximity of existing gas facilities. There are also opportunities in down stream gas business. This area of the gas business could be categorized as follows:-

1. Gas based chemicals
2. Natural Gas Liquid (NGL) Extraction Plants
3. Distribution Companies (already discussed above)
4. Equipment/Service Companies; and
5. CNG application.

(a)      Gas Based Chemicals
Many Chemical processes use natural gas as feedstock (e.g. ammonia and methanol). Entrepreneurs are most welcomed to invest in such gas related project, whether for local market or for export.
Investment in Ammonia/Urea Fertilizer Plant is estimated at about US $400,000 while a methanol Plant producing 200 tonnes per day is estimated to cost US $300,000.00.
(b)      Natural Gas Liquid (NGL) Extraction Plants
NGL extraction Plants could be set up in Imo State to recover natural gas liquids from major gas supply schemes. These liquids which are rich in heavier hydrocarbons have high market values and they could be exported in their raw forms, used as feedstock for production of chemicals or fractionated into LPG, gasoline and various special boiling solvents. It is estimated that investment in Natural Gas Liquids Extraction Plants would Cost about US $100,000.
(c)      Equipment/Service Companies
The qualities of natural gas make it a prime choice for industrial and commercial processes. This provides an excellent opportunity for investors to actively participate in the marketing of specific gas fired equipment (e.g. gas burners, boiler packages, kiln, ovens, dryers, etc.) and in the establishment of engineering re-design/modification of existing liquid gas fired equipment in Nigeria.
(d)      Pipe Manufacture
Gas distribution entails the use of thousands of kilometers of mostly polyethylene (PE) pipes. The opportunities here include the establishment of new facilities for PVC pipe manufacture or investment in joint venture arrangements with existing pipe manufacturers.
(e)      Automotive Compressed Natural Gas (CNG)
When the use of CNG as an automobile fuel become commercialized, there will be opportunities to invest in CNG filling stations, conversion workshops and retails outlets to sell CNG conversion kits. It is estimated that a CNG filling station with about four dispensers to handle 500 cars per day would cost UD $300,000.00.