The Midstream and Downstream Gas Infrastructure Fund (MDGIF) at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has called for continued government incentives to draw investments into gas processing, transportation, storage, and distribution.

The recommendation is coming on the sideline of the progress made on the back of the recent disbursement of N122 billion aimed at bolstering Nigeria’s gas infrastructure.

Executive Director of MDGIF, Mr Oluwole Adama, made this known at the OTL Africa Summit in Lagos, during a session themed “New Energy Order: Updates on Gas, CNG, and LPG.”

Adama highlighted the importance of a supportive regulatory framework to ensure the growth and stability of the gas sector.

He noted that sustained incentives from the government would be instrumental in fostering a robust environment for private-sector investment in critical infrastructure for Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and overall gas sector improvements.

“The injection of funds is only a step; consistent policy support and incentives will pave the way for increased private investment, enhancing our domestic gas value chain and promoting Nigeria’s economic growth,” Adama stated.

The ED of MDGI underscored the importance of a comprehensive approach that integrates policy, infrastructure, and technology investments to fully realize Nigeria’s gas potential.

Adama explained: “Nigeria is sitting on gas, and in line with the global energy order of cleaner fuels, we must position our gas as the energy transition fuel.” He pointed out that the country, endowed with more gas than crude oil, needs to leverage this resource effectively.

Highlighting the vision of the MDGIF, the ED stated that the Fund is focused on financing projects related to Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG) processing plants, gas transportation and distribution, bulk storage and terminals, and capturing gas flares in alignment with the federal government’s net-zero carbon commitment.

He noted that the key goal of the Fund is to enhance local utilization of gas, particularly at the retail level, targeting widespread end users through initiatives like mother-and-daughter stations.

According to him, projects to be funded must align with Nigeria’s National Gas Expansion Program (NGEP), energy security, and the strategic goals for gas utilization.

He added that the projects must possess economic value, be commercially/technically viable, and align with Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) standards.

“We focus on promoting and supporting viable projects while leaving the execution to project owners to drive gas production and utilization,” Adama explained.

“We have already announced six project promoters who met our funding criteria, ensuring that these projects are positioned to boost the domestic gas market and advance our energy transition objectives.”

As MDGIF is primarily an enabling body, its role is not to initiate projects but to provide the financial and strategic backing needed to encourage private-sector investment and optimize Nigeria’s gas resources.,

Adama elaborated on the MDGIF’s recent disbursement of N122 billion, which aims to close the infrastructure gap across Nigeria.

He said: ” This investment will be supported by a 1.5% levy on wholesale petroleum product prices and is expected to generate income from equity investments made by MDGIF project partners, as well as penalties from gas flaring across oil fields.

“Our primary objective is to ramp up the use of gas through various projects and attract investors by alleviating their burden from commercial bank interest rates.”

“The MDGIF is also working to secure multilateral and bilateral funding for gas infrastructure development. The organization prides itself on its strong corporate governance, which is crucial for attracting both foreign and local partnerships, ” he noted.

“We have received considerable encouragement and commendation for our efforts to enhance infrastructure in the gas sector. Our processes are guided by transparency, utilizing top consultants for due diligence to ensure funds are disbursed effectively,” he said.

The MDGIF has announced six project promoters, as the fund does not initiate projects but promotes existing ones for execution.

Among the key projects is a 5,000 MT butane storage facility, expected to support 13,200 MT of NLNG, set for completion by the end of the year.

Another significant project by one of the beneficiaries of the recent disbursement is targeting the establishment of 20 mobile CNG refueling stations, which will help reduce dependency on traditional fuels as more partners convert their vehicles to CNG.

ALSO READ THESE TOP STORIES FROM NIGERIAN TRIBUNE

BREAKING: Ekiti Chief Judge, Adeyeye, passes away at 64US elections result: Presidential race tied in New Hampshire; Ayotte wins big in governor’s contestWhy we terminated Julius Berger’s N740bn road contract — FGPetrol pricing: PETROAN accuses Dangote of trying to stifle competitionNigerians rejected Atiku’s ideas in 2023 — PresidencyPetrol pricing: We sell at N960/litre into ships, N990 for trucks — Dangote Refinery

 

Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).