FG to invest in local companies for gas production

The Federal Government has announced that it will soon choose more beneficiaries for its initiative to invest in indigenous companies focused on energy security and gas infrastructure development.

It stated that this plan will represent a significant milestone in Nigeria’s pursuit of energy security and gas infrastructure development.

The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, announced this at an event where the government approved the disbursement of N122bn to six Indigenous companies.

The fund made available through the Midstream and Downstream Gas Infrastructure Fund is to support the midstream and downstream gas infrastructure development, aligning seamlessly with the aspirations of President Bola Tinubu-led administration.

In line with the Petroleum Industry Act 2021, which provided for the establishment of the MDGIF, the past government of President Muhammadu Buhari had, in August 2022, floated its pioneer governing council, which signalled the commencement of the fund.

The initiative was expected to help bridge the huge infrastructure deficit, which has been a major hindrance towards gas distribution and utilisation in the country, especially in the wake of the ‘Decade of Gas’ and energy transition policies of the nation.

According to a statement by the minister’s spokesperson, Louis Ibah, the effort is to foster business relationships and collaboration to achieve Nigeria’s energy security objectives.

He described it as a breakthrough in Nigeria’s gas revolution and “a testament to the government’s commitment to harnessing the country’s gas resources for socio-economic growth.”

“This partnership between the public and private sectors will transform Nigeria’s gas industry, accelerating our journey towards energy security, industrial growth, and economic prosperity.

“The MDGIF is a catalyst for investment and bridging gaps in the gas value chain by ensuring the financing and delivery of critical projects.

“We urge the beneficiaries to utilize these funds judiciously, maintaining the same zeal and dedication that earned them selection as the first batch of MDGIF beneficiaries.

“Additional batches of beneficiaries will be selected in subsequent rounds,” Ekpo said.

He noted that the selection process was rigorous, with each company chosen for its exceptional performance and dedication to Nigeria’s gas development.

The statement added that the six beneficiary companies – Asiko Energy Holdings Limited, FEMADEC Energy Limited, Ibile Oil and Gas Corporation, Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited – were carefully selected based on their track record of excellence and commitment to supporting Nigeria’s gas revolution.

On his part, the Chairman of the Senate Committee on Gas, Sen. Jaribe Jaribe, 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 established the fund to boost domestic natural gas consumption in Nigeria.