The federal government on Monday, September 30, released N122 billion to six promoters for different gas projects in the country. The government through the Midstream and Downstream Gas Infrastructure Fund (MDGIF)signed agreements with the companies namely: Asiko Energy Holdings Limited AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nail Oil and Gas Limited, Rolling Energy Limited, and Topline Limited. Speaking after the signing ceremony in Abuja,, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo said the government is committing the N122 billion through the MDGIF to assist in the deployment of gas across Nigeria.
His words: “We needed to hear you speak to Nigerians because today the federal government through MDGIF is committing 122 billion Naira into the hands of the six investors, to help in the dissemination of gas to all sectors of the country.”
He said the release of N122billiom will not be the last as the Fund is screening another set of investors for gas development.
Ekpo described gas as a cleaner energy needed to save the environment.
He said the benefitting investors were the first to sign agreements for the projects since the enactment of the Petroleum Industry Act (PIA).
He urged the companies to live up to the expectations of the agreements they signed.
The minister said, “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.”
The three types of agreements were Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements.
Meanwhile, the MDGIF Executive Director, Mr Oluwole Adama said the PIA established the fund intending to increase the domestic consumption of natural gas in Nigeria.
He said the “projects which are financed partly by these project promoters seated across, encouraging private investment through risk-sharing by participating initially in selective high-risk projects.”
He added that agreements were also about equity investment that encouraged investment in midstream, downstream, and gas infrastructure.
The pacts, according to him, were designed to reduce, gas flare.
