Dangote, 14 others face senate committee over N250bn intervention fund for gas production
Nigeria’s natural gas production dropped by 4 cubic feet metres in two years of 2021 and 2022, according to industry report from the Energy Institute in partnership with KPMG.
This is also as the Senate Committee on Natural Gas has already summoned 15 companies which reportedly benefitted from a N250 billion Federal Government intervention fund for gas production.
The report also disclosed that the drop occurred despite an intervention fund of N250 billion advanced to 15 operating firms in the industry.
The country’s gas production recorded at 39 billion cubic feet meters as of 2012 was on a steady growth and had grown to 49 billion cubic feet meters as of 2020, suddenly crashed 45 billion cubic meters in 2021, and then 40 billion cubic meters last year.
“The development happened despite a N250bn intervention fund by FG through the Central Bank of Nigeria, out of which N130bn was doled out to 15 companies for the construction 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,” the report read.
It would be recalled that 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 15 companies, including; 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 reportedly received a combined N130bn, are expected to face the Senate Committee on Gas chaired by Jarigbe Agom Jarigbe (PDP-Cross River North), Thursday.
“The invited companies are required to appear with their progress reports, stating location or projects and the current status of the projects,” the summon letter by the Senate read.
As of August, the Nigeria Extractive Industries Transparency Initiative (NEITI) said Nigeria required $20bn annually to achieve the desired gas expansion plan to bridge the country’s gas infrastructure.