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