…to boost CNG projects across Nigeria
The federal government through the Ministry of Petroleum (gas) on Monday disbursed a total sum of N122 billion to six companies in a bid to boost the development of Compressed Natural Gas infrastructure across Nigeria.
Beneficiaries of the fund which was disbursed under the Midstream, Downstream Gas Infrastructure Fund (MDGIF) include Asiko Energy Holdings Limited, FAMADEC Energy Limited, Ibile Oil and Gas Corporation, Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited.
Speaking during the meeting the heads of the benefitting companies in Abuja, Ekperikpe Ekpo, the Minister of Petroleum (gas) said that the fund stands at the forefront of the government’s strategy to modernize Nigeria’s gas infrastructure.
According to him, the fund has been designed as a catalyst for investment, aimed at bridging gaps in the gas value chain by ensuring the financing and delivery of critical projects. “These initiatives will accelerate our journey towards energy security, industrial growth, and economic prosperity, in alignment with the goals of the Decade of Gas Initiative.
“This is a historic day for the Nigerian gas industry as we announce and finalize a partnership between the public and private sectors to transform the midstream gas value chain.
“This event is a reflection of His Excellency President Bola Ahmed Tinubu, GCFR, efforts and enthusiasm to improve and foster business relationships between the public and private sectors. We are also demonstrating the critical role that collaborations play in accomplishing our country’s energy objectives as we work to improve Nigeria’s gas infrastructure,” he said.
According to him, the agreements with six business entities were imperative to ensuring that projects targeted to ease the adoption and penetration of CNG are delivered in a timely, transparent, and transformational manner.
“The government is fully committed to supporting your efforts through policy frameworks that enable smooth execution while ensuring that every milestone reached contributes to the broader vision of a prosperous Nigeria fueled by gas.
“For those who did not make up the first six, we will make up the second one. But go home and put your records in and of course, this is the first since the passing of the PIA 2021. This is the first signing. And we expect you to live up to expectations.”
According to the minister, the three types of agreements were Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements.
In his remarks, Jarigbe Agom Jarigbe, the Senate Committee on Gas explained that the fund was provided by section 54 of the Petroleum Industry Act, adding that it was supposed to be implemented years back, 2021, when it was gazetted, but nothing has been done about it.
He urged benefitting firms to utilize the fund for the benefit of this country and the advancement of the downstream gas infrastructure.
“Mr President has a vision and those of us in the Senate are ready to give the government all the support under the leadership of the Senate President and we’ve been doing our best. We’ll continue to do our best. We want you to see us as partners in this cause.
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