$20 billion Is Needed Yearly To Bridge Gas Infrastructure Gap- FG

$20 billion Is Needed Yearly To Bridge Gas Infrastructure Gap- FG

The gap in the nation’s gas infrastructure must be filled in the next 10 years, according to information released by the Federal Government yesterday.

Chief Timipre Sylva, Minister of State for Petroleum Resources, made this announcement in Abuja during a meeting of the MDGIF’s Governing Council for the Midstream & Downstream Gas Infrastructure Fund.

The inauguration brings the Federal Government one step closer to completing the vitally important task of developing the nation’s gas industry.

The nine members were given a significant task by Chief Sylva: raising money to build the essential infrastructure for the gas business.

He explained that the inauguration of the Council was a further demonstration of the commitment of President Muhammadu Buhari to reposition the nation’s energy sector “to drive economic development and prosperity for our people, our nation and value to our partners, in accordance with the Petroleum Industry Act 2021 (PIA)”.

Although the Federal Government has implemented numerous programs aimed at realizing the decade of gas efforts and developing the vast gas potential of the nation, the Minister regretted that the fundamental gas infrastructure was still lacking, making it difficult to achieve the goals.

The lack of gas infrastructure in the nation, according to him, is a major factor in the nation’s poor gas output, gas flaring, and low domestic gas utilization.

He said: “It is estimated that more than $20 billion yearly will be required over the next ten years to bridge these gaps,” Minister said.

“The Fund, established under Section 52 of the PIA, resides as a Directorate in the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA”.

As a Directorate within the Authority, the Minister said the Fund would be expected to benefit from its internal reporting, operational and organizational processes adding that in accordance with the PIA, 2021, the Council “shall supervise and make investment decisions for the Fund”.

Section 52 (3) provides for the Governing Council to supervise and make investment decisions for the Fund.

“The Midstream and Downstream sector is where the jobs could be created and value added to the economy,” Sylva said, urging the Council members to take their assignment seriously.

“There is an urgent need to focus on the major strategic plans and key initiatives to enable the government to set a clear trajectory to achieving the noble objectives of establishing the Fund,” he further stated.

The Council’s mandate includes identifying crucial and pertinent players who can boost the domestic use of natural gas, LPG, and autogas as well as developing a strategy for turning gas into a value-added commodity in Nigeria.

The Executive Director MDGIF serves as the Council’s CEO, while the Minister of State for Petroleum Resources serves as its chairman.

The Legal Adviser, NMDPRA, will serve as the Council’s Secretary. Other members of the Council include Dr. Scholastica Nnaji, who represents the Central Bank of Nigeria (CBN), Mr. Victor Omata, who represents the Federal Ministry of Finance, Farouk Ahmed, the Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority, Mr. Ahmed Bobboi, Abdullahi Bukar, and Mr. Effiong Abia.