The Federal Government has released N122 billion to six gas infrastructure companies with the goal of transforming the midstream gas value chain across the country.
The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo, said this at the Midstream Downstream Gas Infrastructure Fund (MDGIF)/Promoters Agreement Signing Ceremony, in Abuja on Monday.
The MDGIF entered into agreement with Gas Infrastructure Promoters, to improve Nigeria gas infrastructure.
Ekpo said that the fund was committed to the investors to ensure that Nigeria was driven by gas.
”This is a historic day for the Nigerian gas industry as we announce and finalise a partnership between public and private sectors with the goal of transforming the midstream gas value chain.
“This is a reflection of President Bola Tinubu’s efforts and enthusiasm to improve and foster business relationships between the public and private sectors.
“Today is a significant milestone as we formally enter into agreements with six business entities that have been screened to obtain government equity participation under the MDGIF,” he said.
Ekpo said the promoters were carefully chosen in compliance with the MDGIF Investment Policy Statement (MIPS) and the Petroleum Industry Act (PIA) 2021, deserve our congratulations.
“They have demonstrated their ability and commitment in supporting us to provide gas to end users,” he said.
The minister said that the MDGIF stood at the forefront of the strategy to modernise Nigeria’s gas infrastructure.
According to him, it has been designed as a catalyst for investment, aiming 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.
“By bringing together government’s efforts and private sector expertise, the MDGIF is positioned to fuel growth in gas processing, transportation, storage, and distribution infrastructure.
“This collaboration is essential to achieving our target of transitioning from a crude oil-dependent economy to one driven by natural gas and its derivatives,” he said.
Ekpo said the selection process was rigorous and each of the companies was chosen for their track record of excellence, technical expertise and unwavering commitment to supporting Nigeria’s gas revolution.
“As we sign these agreements today, it is essential that we maintain a focus on delivering projects that are timely, transparent and transformational.
“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.
“I encourage each of you to continue working with the same dedication that brought you to this point.
“Together, we will chart a path toward building sustainable energy infrastructure that benefits our economy and society for generations to come,” he said.
Amb. Nicolas Ella, Permanent Secretary of the ministry, urged the investors to be diligent and committed in the execution of the project.
Sen. Jaribe Jaribe, Senate Committee Chairman on Gas, said the senate would continue to provide support to ensure strong partnership in the implementation of the initiative.
Mr Oluwole Adama, Executive Director, MDGIF, said the project was spread across 20 Federal Universities to alleviate the cost of transportation for Nigerian students, lecturers, and administrative staff.
“It is hoped that more institutions will be included as soon as possible,” he said.
Mr Fola Akinnola, Managing Director, FEMADEC Energy, one of the beneficiaries on the project execution, said that he would ensure that the project was execute and delivered effectively and on good time.
The six companies include Asiko Energy Holdings Ltd. (AEHL), FEMADEC Energy Ltd., Ibile Oil and Gas Corporation (IOGC), Nsiko Oil and Gas Ltd., Rolling Energy Ltd and Topline Ltd.