The Federal Government has signed a N122 billion project equity participation agreement with six gas infrastructure companies aimed at transforming the midstream gas value chain across the country.
This was disclosed by the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, during the signing ceremony of the Midstream Downstream Gas Infrastructure Fund (MDGIF) and Promoters Agreement in Abuja on Monday.
According to the News Agency of Nigeria (NAN), the MDGIF entered into the agreement with gas infrastructure promoters to enhance Nigeria’s gas infrastructure. Ekpo emphasized that the fund was committed to supporting investors to ensure Nigeria’s growth is driven by gas.
The government, through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), signed agreements with six companies: Asiko Energy Holdings Limited (AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited.
Following the signing ceremony in Abuja, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, stated that the government is committing N122 billion through the MDGIF to support the deployment of gas infrastructure across Nigeria.
He said, “Today marks a significant step forward in Nigeria’s gas revolution. I am pleased to announce the Federal Government’s approval of N122 billion for six indigenous companies through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). This groundbreaking investment demonstrates our unwavering commitment to energy security, economic growth, and the development of Nigeria’s gas infrastructure.”
“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,”
Ekpo noted that the promoters were carefully selected in accordance with the MDGIF Investment Policy Statement (MIPS) and the Petroleum Industry Act (PIA) 2021, deserving recognition for their achievement.
He emphasized that the selection process was thorough, with each company chosen based on their proven track record of excellence, technical expertise, and strong commitment to advancing Nigeria’s gas revolution.
Sen. Jaribe Jaribe, Chairman of the Senate Committee on Gas, assured that the Senate would continue to provide support to foster a strong partnership in the implementation of the initiative.
The three types of agreements signed were Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements.
Meanwhile, MDGIF Executive Director, Mr. Oluwole Adama, stated that the Petroleum Industry Act (PIA) established the fund with the aim of boosting domestic natural gas consumption in Nigeria.