The Special Adviser to President Tinubu on Energy, Mrs. Olu Verheijen has said that Nigeria is deploying capital into midstream gas to close infrastructure gaps.
She made the statement during the OTL Downstream Week which was held in Lagos recently.
According to her, the government is addressing gas infrastructure gaps in the country to speed up the gas transition of the economy.
She said:
- “We are making concerted efforts to streamline a lot of the approval processes and regulatory processes. We have been working very closely with NMDPRA to deploy capital from the Midstream Infrastructure Fund into the Midstream Gas phase where there is a critical infrastructure gap.”
Also, during the OTL Downstream Week, Farouk Ahmed, the Authority Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said that the focus of the Tinubu-led administration is to unleash the gas assets that the country has, as a transition fuel.
According to him, Nigeria has over 208 trillion cubic feet of gas and if investments can go into the country’s gas, then the country can easily transition to net zero.
He said:
- “We as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are enablers of investments, so we are here to ensure that potential investors come and invest in Nigerian oil and gas – particularly the midstream and downstream sector. The midstream is untapped so there are a lot of potentials and possibilities there. Our participation here is of enormous importance to us because we interact with potential investors and current stakeholders.”
Meanwhile, Gabriel Aduda, the Permanent Secretary at the Ministry of Petroleum Resources said there are key areas to focus on to develop Nigeria’s downstream sector. These areas include the following:
- Infrastructural development
- Refining capacity expansion
- Supportive regulations
What you should know: During the Domestic Gas and Gas Infrastructure Summit (DGGIS) held in Abuja in October 2023, Ekperikpe Ekpo, Nigeria’s Minister of State for Petroleum Resources (Gas) said that the Petroleum Industry Act (PIA) is already bridging infrastructural gaps in the gas sector.
According to him, natural gas is a long-term solution to energy deficits in Nigeria and ensuring that infrastructure gaps are closed is a vital part of that plan. He said:
- “In addressing the infrastructural deficit that has long held our gas sector, the implementation of the Petroleum Industry Act (PIA) marks a watershed moment. The PIA framework on strategic interventions such as the Midstream and Downstream Gas Infrastructure Fund (MDGIF) is already bridging the infrastructure gap that has existed fostering an environment that attracts investments, and innovation which are crucial for expanding our domestic gas utilization and infrastructure.
- “These advancements are not just in anticipation of domestic growth but strides towards making Nigeria a pivot in Africa’s gas market and indeed the world.”
