By Vivian Emoni

The Federal Government has released N122 billion to six gas infrastructure companies in its drive to transform the midstream gas value chain across the country.

The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo, said this at the Midstream Downstream Gas Infrastructure Fund (MDGIF)/Promoters Agreement Signing Ceremony, in Abuja on Monday.

The News Agency of Nigeria (NAN) reports that the MDGIF entered into agreement with Gas Infrastructure Promoters, to improve Nigeria gas infrastructure.

Ekpo said the fund was committed to the investors to ensure that Nigeria was driven by gas.

”This is a historic day for the Nigerian gas industry as we announce and finalise a partnership between public and private sectors with the goal of transforming the midstream gas value chain.

“This is a reflection of President Bola Tinubu’s efforts and enthusiasm to improve and foster business relationships between the public and private sectors.

“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,” he said.

Ekpo said the promoters were carefully chosen in compliance with the MDGIF Investment Policy Statement (MIPS) and the Petroleum Industry Act (PIA) 2021, deserve our congratulations.

“They have demonstrated their ability and commitment in supporting us to provide gas to end users,” he said.

The minister said that the MDGIF stood at the forefront of the strategy to modernise Nigeria’s gas infrastructure.

According to him, it has been designed as a catalyst for investment, aiming at bridging gaps in the gas value chain by ensuring the financing and delivery of critical projects.

“These initiatives will accelerate our journey towards energy security, industrial growth, and economic prosperity, in alignment with the goals of the decade of gas initiative.

“By bringing together government’s efforts and private sector expertise, the MDGIF is positioned to fuel growth in gas processing, transportation, storage, and distribution infrastructure.

“This collaboration is essential to achieving our target of transitioning from a crude oil-dependent economy to one driven by natural gas and its derivatives,” he said.

Ekpo described the selection process as ‘rigorous,’ adding that each of the companies had been chosen for their track record of excellence, technical expertise and unwavering commitment to supporting Nigeria’s gas revolution.

“As we sign these agreements today, it is essential that we maintain a focus on delivering projects that are timely, transparent and transformational.

“The government is fully committed to supporting your efforts through policy frameworks that enable smooth execution, while ensuring that every milestone reached contributes to the broader vision of a prosperous Nigeria fueled by gas.

“I encourage each of you to continue working with the same dedication that brought you to this point.

“Together, we will chart a path toward building sustainable energy infrastructure that benefits our economy and society for generations to come, ” he said.

Amb. Nicolas Ella, Permanent Secretary in the ministry, urged the investors to be diligent and committed in the execution of the project.

Sen. Jaribe Jaribe, Chairman of the Senate Committee on Gas, said the senate would continue to provide support to ensure strong partnership in the implementation of the initiative.

Mr Oluwole Adama, Executive Director, MDGIF, said the project was spread across 20 Federal Universities to alleviate the cost of transportation for Nigerian students, lecturers, and administrative staff.

“It is hoped that more institutions will be included as soon as possible,” he said.

Mr Fola Akinnola, Managing Director, FEMADEC Energy, one of the beneficiaries of the project execution, pledged that the project would execute and delivered effectively and on good time.

NAN reports that the six companies include Asiko Energy Holdings Ltd (AEHL), FEMADEC Energy Ltd., Ibile Oil and Gas Corporation (IOGC), Nsiko Oil and Gas Ltd., Rolling Energy Ltd and Topline Ltd. (NAN) (www.nannews.ng)

Edited by Dorcas Jonah/Vivian Ihechu

By Yusuf Yunus

Mr Bayode Ogidan, an oil and gas pipeline expert, says gaps in infrastructure, weak regulatory enforcement and competing economic priorities have contributed to the continued gas flaring in Nigeria.

Ogidan, a consultant with Mcdedict Global Services, disclosed this in an interview with the News Agency of Nigeria(NAN) on  Thursday in Lagos.

The consultant with over 20 years experience said: “Gas flaring in Nigeria continues to pose significant environmental and economic challenges.

“While efforts have been made to curb the practice, gaps in infrastructure, regulatory enforcement, and economic priorities have allowed it to persist.

“Addressing these issues through stronger regulations, investment in gas infrastructure, and community involvement is essential to mitigating the harmful impacts of gas flaring.

“By harnessing the potential of associated gas, Nigeria could not only reduce its environmental footprint but also unlock new economic opportunities that benefit both local communities and the nation as a whole.”

Speaking on environmental impact,  Ogidan noted that gas flaring, the burning of natural gas that accompanied crude oil extraction, remained a practice that had persisted for decades in Nigeria.

The expert highlighted the environmental consequences of gas flaring, delved into the factors driving this practice, examined its economic effects, and proposed possible solutions.

Ogidan noted: “This issue not only damages the environment but also represents a loss of potential economic value.

“Despite a decline in oil production from some fields, gas flaring remains a significant issue in some facilities. While some measures have been implemented, loopholes persist.

“The government’s continued reliance on oil may have hindered stricter enforcement of regulations.”

According to him, this process can be hazardous due to the height of the flare stack (10-100 meters) and the potential for missed ignition attempts when the facility has a faulty flare ignition system.

“Due to climate change and increased oil production, fishing is less profitable.

“The marine life and ecosystem in these areas have been affected by the constant heat generated by the flares,” he added.

Ogidan listed hazards for these to include air pollution and health concerns, climate change, and acid rain which harmed the soil for agriculture and reduced its fertility.

“For farmers in the Niger Delta, where gas flaring is most rampant, this means lower crop yields and a threat to food security.

“Contaminated water sources and damaged farmlands directly affect local economies that depend on agriculture,” he said.

The consultant added that the practices had also led to the loss of biodiversity.

He said: “The heat and pollution from gas flaring also damage nearby ecosystems. Wildlife, plants, and aquatic life suffer as their habitats are destroyed or polluted.

“This disruption can lead to the loss of species that are critical for maintaining a healthy and balanced environment.

“It can further threatening both local biodiversity and the wellbeing of communities dependent on these ecosystems for sustenance.”

Speaking on the economic impacts of gas flaring, Ogidan said that the practice had also led to wasted economic resources.

“The gas flared represents a significant economic resource that could be utilised for energy generation, both for domestic consumption and export.

“Nigeria loses billions of dollars each year by burning off this valuable resource instead of harnessing it for electricity, industrial use, or export as liquefied natural gas (LNG).

“Gas that could power homes, industries, and transportation is wasted in the skies above oil fields,” he said.

He said that the practice had also led to economic hardship for local communities and increased healthcare costs.

“The health impacts of gas flaring have financial implications as well. Illnesses linked to air pollution, such as respiratory problems and cancer, increase healthcare costs for families and burden the country’s medical system.

“The loss of productivity due to these health issues also dampens economic growth in affected regions,” he added.

Proffering solutions, he advocated improved regulation and stronger penalties as well as investment in gas utilisation infrastructure and promotion of domestic energy solutions.

He said that the Nigerian government needed to reinforce its regulations on gas flaring, with stricter penalties for violations.

According to him, higher fines and stronger enforcement could pressure oil companies to invest in alternative methods of gas disposal or utilisation.

Ogidan said that eliminating legal loopholes that permitted continued flaring would also send a clear message that environmental degradation would no longer be tolerated.

He said that building pipelines, processing plants, and gas storage facilities would enable the country to utilise the gas for domestic power generation, which could also help alleviate Nigeria’s energy crisis.

According to him, this investment will also unlock the potential for gas export, providing a significant economic boost.

“Instead of flaring gas, Nigeria should prioritise its use in generating electricity and powering industries.

“Expanding gas-to-power projects would not only reduce flaring but also address the country’s electricity shortage.

“Leveraging natural gas as a cleaner energy source could reduce Nigeria’s reliance on dirtier fuels like diesel and coal, thus lowering overall emissions,” Ogidan said.

He called for community engagement and awareness, as well as empowering local communities.

This, Ogidan explained would be would be through education and involvement in decision-making processes which  is crucial. (NAN)

Edited by Olawunmi Ashafa

By Emmanuella Anokam

The Federal Government has tasked investors in the country to utilise the Nigerian Content Development and Monitoring Board (NCDMB) intervention funds for the purpose they were meant for.

Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), made this known on Thursday during a facility tour of Amal Tech Limited, located at Idu Industrial Layout, Abuja.

The News Agency of Nigeria (NAN) reports that the minister who was on the tour with some officials of the ministry was conducted round the company’s facility by its Chief Executive Officer, Mr Shehu Abdullahi.

Lokpobiri, who was proud of the company’s proficiency, expressed commitment towards strengthening its partnership with the NCDMB because of the value it had added to the Nigerian economy.

“I use this opportunity to tell other people who are in partnership with NCDMB to use the funds that they have been able to get at single digit for the purpose the investments were made.

“It is surprising to hear that between the investments and the loans, the NCDMB in the last few years has spent over half a billion dollars,’’ he said.

The minister, who was amazed that Amal Tech Ltd. got the least amount in terms of what NCDMB invested, promised to grant the company any support it needed for showing capacity in managing funds and creating value.

He thanked the Amal CEO for choosing to domesticate his knowledge/expertise in different sectors of the economy to create employment, contrary to some Nigerians who chose to take their expertise outside.

“As rightly said, this company started with a small idea of a smoke and leak detector production, and now you have expanded to manufacturing meters, Point of Sale (POS) machines and pipeline cellulose.

“I believe that in the next few years, you will do amazing things. The least we can do is to strengthen our support for you, so that you can do more, not just for the Nigerian economy but for the entire world,’’ he said.

The minister also promised to work with the company to spur more engagements, particularly by deploying its technology on the pipeline surveillance to assist in curbing oil theft.

Lokpobiri said that its facility and services would be strategic to achieve the objective of reducing the infractions on the pipelines which was affecting the country’s overall production.

“We have the capacity to produce 2 million barrels per day (bpd) or more and it is our ambition to ensure that we do 2mbpd or more by the end of 2024.”

The minister expressed delight that as a serving senator in 2010, he was among those who basically conceived and passed the bill for the NCDMB to be created to support local industries.

He promised to assist the company to market its products and services in the West African sub region and in other locations where Nigeria’s affiliations reached such as the African Petroleum Producers Organisation (APPO).

Abdullahi, while responding, thanked the minister for the financial support his company had received.

He said that the gesture demonstrated the government’s willingness to drive local content for the good of the economy.

Abdullahi said that he was looking forward to more partnership as promised by the minister.

He said the company which was commissioned in 2023 rely solely on local resources for its production to enhance local content, give value to the Nigerian market and save money for the Nigerian economy to thrive.

Among its technologies include a wireless alarm transmission, a technology driven approach to pipeline monitoring and GIS-Based Pipeline Monitoring which allows for the visualisation of pipeline routes and potential issues on a map with clear overview.

Others are Operator Training Simulation, Drone Monitoring and Surveillance for aerial views of the pipelines especially in remote areas, Control and Command System and Distribution, Acoustic Sensing and Seismic Technology and Sensor Integration.

The products also include pipeline monitoring components, three-in-one devices with Wi-Fi, gas leak and smoke detector, smart metres, water heater, fire alarm panel and POS machines that accept payment offline with other functionalities, among others. (NAN)(www.nannews.ng)

Edited by Emmanuel Afonne

By Emmanuella Anokam

The Federal Government has reiterated commitment to meet the September deadline set out for the commencement of the African Energy Bank (AEB).

Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), gave the assurance on Wednesday in Abuja when Dr Omar Ibrahim, Secretary-General, African Petroleum Producers’ Organisation (APPO) visited him.

The News Agency of Nigeria (NAN) reports that Nigeria, on July 4, was granted the hosting right for the Africa Energy Bank after beating Ghana, Benin Republic, Algeria, South Africa and Cote D’Ivoire in a keenly contested bidding.

To ensure the bank’s operationalisation, APPO Secretary-General called on African oil-producing member countries to contribute their subscription fees of 83 million dollars, aiming for the bank’s inauguration in September 2024.

Lokpobiri said it was working assiduously to resolve the issues bordering on the host country agreement, the headquarters building and the balance of the subscription.

“We are working very seriously to fulfill all the things we have signed up to do before the end of September, so that the bank can actually start off.

“We want to emphatically state that Nigeria is committed to meeting her obligations as a host country. We are working day and night to ensure that we meet the September deadline,” he said.

He said the Permanent Secretary of the ministry, Amb. Nicholas Ella, and him, had been meeting daily, while the permanent secretary had been spearheading the technical team to ensure that everything was done within the time frame.

He commended Ibrahim for the excellent job he had done for APPO, adding that since his assumption as the Secretary-General, APPO had been rebranded and grown exponentially to its current level.

“And we Nigerian are very proud of you, not just as our ambassador, but as an ambassador of Africa.

“Anytime you speak, the rest of the world listens because of your depth of knowledge and the way you have been rated globally as far as the energy community is concerned,” he said.

The minister, while urging him to join in building the bank to a strong level before exiting as the Secretary-General, said he supported all the countries, though criteria was clearly spelt out but Nigeria won squarely.

Earlier, the Secretary-General, who was on his first visit to Nigeria after it won the AEB hosting right, commended the ministry for its efforts toward the establishment of the Bank, an initiative of the APPO and Afreximbank.

“There are issues. One is the host country agreement, second is the headquarters preparing it and the third is to make up the difference between what Nigeria pledged and what Nigeria has paid so far.

“Everybody is looking up to Nigeria. Ministers of other countries are asking me, when are you moving? When are we starting,” he said.

He then appealed to the Federal Government to conform with its promise to APPO which informed the decision to give Nigeria the hosting right.

“As a Nigerian, I am very happy, pleased and very proud of what you have done. I want to make it very clear, Nigeria won and won fair and square.

“And I want to say that really Nigeria should be proud of its team in APPO, the minister, the permanent secretary and consultants.

“You have earned the respect of your colleagues. And I want this to be sustained,” he said. (NAN)(www.nannews.ng)

Edited by Vivian Ihechu

By Emmanuella Anokam

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), has advised the Dangote Refinery and Petrochemicals and other modular refineries in the country to sell refined products to oil marketers in Naira.

The association said that “this is imperative as the refiners will also be getting the crude in Naira”.

Its National President Benneth Korie made this appeal while briefing newsmen on Wednesday in Abuja.

The News Agency of Nigeria (NAN) recalls that President Bola Tinubu recently directed the Nigerian National Petroleum Company Ltd. (NNPCL) to sell crude oil to Dangote and other modular refineries in the country’s currency.

“I also want to express our support for the president’s directive to sell crude oil in naira.

“We hope that our refineries will reciprocate by selling refined products in naira, thus stabilising the market”, he said.

Korie said that to ensure a balanced distribution, the Dangote’s refined products should be made available to a broader range of stakeholders.

He listed the stakeholders as the NNPC Trading, NNPC Retail, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN).

He included others as the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) and NOGASA.
This inclusivity, according to him, would facilitate sustainable and widespread distribution across the country.

He urged the Federal Government to expedite the commencement of the Port Harcourt Refinery slated for September to alleviate the current shortages and ensure that the products were distributed among the same stakeholders.

He called for the reduction in the price of Automotive Gas Oil — diesel — to lower transportation costs and reduce the price of petroleum products.

“With Dangote’s refinery production and crude oil transactions in naira, we expect a reduction in diesel price.

“NNPC Ltd. should leverage its shares in Dangote’s refinery to drive down these costs, which will lower transportation expenses and reduce market prices”, he said.

On issue of smuggling, he said, there was the need to redesign distribution channels to prevent illegal exportation of petroleum products.

Korie, while explaining that “road constitutes 45 per cent of the delay in the delivery of the petroleum products”, urged the government to improve transportation network.

He advised the government to expand and revamp railways for bulk cargo to enhance logistics.

He also urged the federal, states and local governments to discourage the multiple taxation on the nation’s highways.

On inflation, he urged the government at all levels to prioritise agriculture by making farming more attractive, profitable.

According to him, this can be done by subsidising agricultural inputs and equipment to address public apprehension over rising costs.

“Extension workers should also be deployed to educate farmers on modern techniques such as irrigation and fumigation,” he said.(NAN)(www.nannews.ng)

Edited by Kayode Olaitan