In order to eliminate missed opportunities in the oil and gas sector, the Nigerian Content Development Monitoring Board (NCDMB) reaffirmed Wednesday the necessity for the government to take decisive action on some final investment decisions (FIDs).
If international investors are to take the country seriously, the NCDMB contends that the current issues impeding foreign investments, particularly in the oil and gas industry, must be resolved.
Olokola LNG and Brass LNG, two significant LNG projects, could have increased Nigeria’s capacity by 22 million tonnes per year and helped the country’s earnings at a time when demand for LNG is very high globally as a result of the raging energy crisis.
Initiated in 2003 and 2005, respectively, were the $20 billion Brass LNG project in Bayelsa State and the $9.8 billion Olokola LNG project, which is situated in a border town between Ogun and Ondo states. But throughout the years, a lack of final investment decisions has caused the projects to languish.
Timipre Sylva, the Minister of State for Petroleum Resources, recently stated that the Federal Government was looking for new investors for the country’s abandoned LNG projects.
Additionally, the Nigerian Content Intervention Fund, run by the Bank of Industry, has provided access to at least $293.26 million and N32.85 billion for indigenous businesses since it was established in 2017. According to the NCDMB, this indicates that local capacity has increased over time.
The Nigerian Content Intervention (NCI) Fund is a pot of money provided by the Nigerian Content Development and Monitoring Board (NCDMB) to be administered by the Bank of Industry in order to meet the financing requirements of domestic producers, service providers, and other significant players in the Nigerian oil and gas industry.
The money came from the Nigerian Oil and Gas Content Development Act (NOGICD) Act’s section 104, which established the Nigerian Content Development Fund (NCDF).
The findings were presented during a media stakeholders’ workshop in Lagos by the general managers of corporate communications at NCMDB, Ginah Ginah and Dr. Obinna Ofili.
Ginah claimed that NCDMB had actively promoted the use of gas as a transition energy source because it was cleaner due to its lower greenhouse gas emissions. She added that the media, in its capacity as an agenda-setter, had played a crucial role in the adoption of gas as a means of promoting economic development.
He pointed out that after funding early-stage gas projects, the legislative structure and timing for a gas revolution were established. The next step was to draw investment to the gas industry.
Even while loan performance is still impressive, Ofili claimed that the various intervention funds have assisted indigenous operators in growing their capabilities in the oil and gas sector.
Ginah said that the board has established projects for modular refining, gas processing, gas distribution, electricity generation, manufacturing, and other things by partnering with 15 companies on its own.
He claims that 70% of the board’s holdings are in gas-related businesses, particularly midstream and downstream gas.
He claimed that, in addition to its function in the energy transition, the NCDMB investments highlighted the significance of gas for Nigeria’s economic viability.
He continued by saying that gas could be used to generate electricity, industrialize, boost the GNP, and ensure the security of food supply.
He stated that the NCMDB collaborated with Rungas to create 1.2 million LPG composite cylinders annually in Bayelsa and Lagos as one of its gas-based ventures.
“It is collaborating with NEDO Gas Processing Company in Kwale, Delta State, to establish an 80 million standard cubic feet per day gas processing plant and a 300 million standard cubic feet per day gas gathering hub.
“The board is also working with Duport Midstream to establish an energy park at Egbokor, Edo State.
“The park would include a 40 million standard cubic feet per day gas processing plant, 2,500 barrels per day modular refinery and 20 megawatts power plants.
“The board partnered with the NNPC to invest in Brass Fertilizer and establish a 10,000 tonnes per day Methanol Production plant at Odioama, Brass, Bayelsa State”, he added.
In order to build a 5,000 metric tonnes per day LPG storage and loading terminal facility in Koko, Delta State, he said that the board was partnering with Triansel Gas Limited.
