Gas Production Decline Admist FG’s N250bn Intervention Fund

Natural gas production decreased last year even though fifteen businesses received a N250 billion intervention money. The Energy Institute and KPMG together released an industry analysis stating that between 2021 and 2022, Nigeria’s natural gas output fell by 4 billion cubic feet meters.

Gas output in the nation, which was estimated to be 39 billion cubic feet meters in 2012, increased steadily and reached 49 billion cubic feet meters in 2020 before abruptly plunging to 45 billion cubic meters in 2021 and finally 40 billion cubic meters last year.

In spite of a N250 billion intervention money provided by FG through the Central Bank of Nigeria, of which N130 billion was distributed to 15 businesses for the building of Compressed Natural Gas conversion centres.

“The NGEP was introduced by the Federal Government to make the CNG the fuel of choice for transportation and the Liquefied Petroleum Gas, the fuel of choice for domestic cooking, captive power and small industrial complexes.”

After the flag off of NGEP, the CBN also introduced the N250bn intervention facility to help stimulate investment in the gas value chain as part of its efforts at stimulating finance to critical sectors of the economy.

The fifteen companies- Dangote Oil Refinery, Nipco Gas Ltd, Nipco Plc, Hyde Energy Ltd, Lee Engineering and Construction Company, Pinnacle Oil and Gas FZE, Transit Gas Ltd, Almalgamated Oil Company Nig Ltd, First Modular Gas Systems Ltd, NOVAGAS Ltd, Greenville Liquefied Natural Gas Company, AP LPG Limited, and MOB Integrated Services Limited, Delta State Government, and Gas Nexus Ltd that received a combined N130bn, would on Thursday face the Senate Committee on gas chaired by Jarigbe Agom Jarigbe.

President, the Independent Petroleum Marketers Association of Nigeria, Chinedu Okoronkwo lamented the exclusion of his members from the loan. He boasted that his members would have by now, converted more than one million vehicles to CNG models if they were included in the plan.

“None of my members got a kobo from the money. If such funds were given to the right people, by now, many stations would have commenced the CNG conversion centres and by now more than one million cars would have been converted,” he said.

As of August, the Nigeria Extractive Industries Transparency Initiative said Nigeria required $20bn annually to achieve the desired gas expansion plan to bridge the country’s gas infrastructure.

Gas Production Declines Despite FG’s N250billion Intervention Fund


Please enter your comment!
Please enter your name here