The Federal Government has inked a N122 billion project equity participation agreement with six gas infrastructure businesses targeted at revamping the midstream gas value chain across the country.
During the signing of the Promoters Agreement and the Midstream Downstream Gas Infrastructure Fund (MDGIF) in Abuja on Monday, the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, revealed this.
The News Agency of Nigeria (NAN) reports that the MDGIF signed the deal with proponents of gas infrastructure in order to improve Nigeria’s gas infrastructure. Ekpo stressed that the fund was dedicated to helping investors make sure that gas is the primary driver of Nigeria’s economy.
Six firms signed agreements with the government through the Midstream and Downstream Gas Infrastructure Fund (MDGIF): 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.
The government is committing N122 billion through the MDGIF to support the deployment of gas infrastructure throughout Nigeria, according to Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), who made this announcement following the signing ceremony in Abuja.
He stated, “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.”
Promoters Picked With Apt Consideration
Ekpo stated that the promoters should be commended for their accomplishments because they were properly chosen in compliance with the MDGIF Investment Policy Statement (MIPS) and the Petroleum Industry Act (PIA) 2021.
He underlined that a rigorous selection process had been followed, and each company was picked on the basis of their technical prowess, demonstrated competence, and resolute commitment to promoting Nigeria’s gas revolution.
The chairman of the Senate Committee on Gas, Sen. Jaribe Jaribe, gave the assurance that the Senate would keep supporting the effort in order to create a solid partnership for its implementation.
Joint Operating Agreements, Equity Contribution Agreements, and Joint Venture Account Agreements were the three categories of agreements that were inked.
The Petroleum Industry Act (PIA), according to MDGIF Executive Director Mr. Oluwole Adama, established the fund with the intention of increasing Nigeria’s domestic natural gas consumption.
