The Federal Government has signed a N122 billion project equity participation agreement with six gas infrastructure companies aimed at transforming the midstream gas value chain across the country.
This was disclosed by the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, during the signing ceremony of the Midstream Downstream Gas Infrastructure Fund (MDGIF) and Promoters Agreement in Abuja last week Monday.
According to the News Agency of Nigeria (NAN), the MDGIF entered into the agreement with gas infrastructure promoters to enhance Nigeria’s gas infrastructure. Ekpo emphasized that the fund was committed to supporting investors to ensure Nigeria’s growth is driven by gas.
The government, through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), signed agreements with these six companies:
- Asiko Energy Holdings Limited (AEHL)
- FEMADEC Energy Limited
- Ibile Oil and Gas Corporation (IOGC)
- Nsik Oil and Gas Limited
- Rolling Energy Limited
- Topline Limited.
Following the signing ceremony in Abuja, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, stated that the government is committing N122 billion through the MDGIF to support the deployment of gas infrastructure across Nigeria.
He expressed his pleasure to announce the Federal Government’s approval of N122 billion for six indigenous companies through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). He also indicated the significance of this step in moving Nigeria’s gas revolution forward.
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 (PIA) established the fund with the aim of boosting domestic natural gas consumption in Nigeria.
This groundbreaking investment, Ekpo said, demonstrated the government’s unwavering commitment to energy security, economic growth, and the development of Nigeria’s gas infrastructure. He also added that a significant milestone was achieved on the day the agreement was signed with six business entities that had been screened to obtain government equity participation under the MDGIF.
He noted that the promoters were carefully selected in accordance with the MDGIF Investment Policy Statement (MIPS) and the Petroleum Industry Act (PIA) 2021, deserving recognition for their achievement.
He further emphasized on the thoroughness of the selection process as each company was chosen based on their proven track record of excellence, technical expertise, and strong commitment to advancing Nigeria’s gas revolution.
Sen. Jaribe Jaribe, Chairman of the Senate Committee on Gas, assured that the Senate would continue to provide support to foster a strong partnership in the implementation of the initiative.
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