Financial Energy Review
….Gas Infrastructure Fund not for Loan or Grants…….
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDRA) has said that there has been a notable upsurge in the number of applications for various licenses in the gas infrastructure value chain across the country because of the renewed interest of the government in optimizing gas utilization.
Ogbuga Ukoha, executive director, Distribution System Storage and Retailing Infrastructure, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPR), said the authority is, therefore, at the threshold of regularizing the licenses of investors already operating in the gas infrastructure value chain.
Ukoha who spoke at the ongoing 18th Africa Downstream Energy Week holding Lagos, Nigeria, with its theme as ‘Alliance for Growth’ said there are some gas infrastructure that will help in the effort to ensure gas is served to various parts of the country for developmental purposes.
He stated that one of those infrastructures is the 615 kilometre Ajaokuta Kaduna Kano gas pipeline, which is supposed to deliver about 2 billion standard cubic feet of gas every day when it is completed.
According to him, this is a major enabler for the growth of gas when it is completed as there would be spur lines that other investors could utilised to carry out their gas businesses.
The NMDPRA boss also spoke about the NLNG train 7 which is under construction. The plant he stated will deliver about seven million tons of gas to deliver which is very critical for the gas industry in the country.
He also cited the recent effort by the government in which it directed that there should be no exportation of LPG products unless the country’s domestic needs are fully met as part of the stride being taken by the government to ramp up gas development for the benefit of Nigerians.
Also speaking at the event, Oluwola Adama, Executive Director, Midstream and Downstream Gas Infrastructure Fund (MDGIF), spoke on the Fund which he declared is meant for gas infrastructural development through equity investment and not loan.
According to him, the Fund is set up to encourage people who want to invest in gas infrastructure in Nigeria. He explained that the Fund is currently not doing badly and it is trying to make itself an international brand
It is government equity and not loan or grant. It is meant to de-risk and catalyze capital gas infrastructure development, he said.
He stated that the target areas of the Fund are gas processing plants, gas transmission and distribution, storage, and terminals among others.
Aside from the 0.5 percent of the prices of petroleum products and Natural gas being paid into the fund, it also assistance from multilateral agencies.
He said the Fund recently announced partnership with six project
