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From Uche Usim, Abuja
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) through its Midstream and Downstream Gas Infrastructure Fund (MDGIF) has signed a Memorandum of Understanding (MOU) with Ibile Oil and Gas Corporation for the development of infrastructure for the Compressed Natural Gas (CNG).
The agreement signing ceremony was held in Abuja on Thursday at the instance of the Minister of State for Petroleum (Gas) Ekperikpe Ekpo.
He said the deal will help the firm accelerate the penetration of Compressed Natural Gas (CNG) to drive the transport sector.
According to him, owing to the removal of the Premium Motor Spirit (PMS) petrol subsidy, the need for an MoU for an alternative fuel has become expedient.
His words: “It is an important moment in the history of this ministry and today, I have witnessed the signing of MoU between the NMDPRA with IBILE Oil and Gas Company.
“This will help them to develop the infrastructure for CNG. And of course, with the withdrawal of subsidy the alternative means now is the natural gas.
“So what they are coming in to do and the essence of this agreement or MoU is to fastrack the penetration of natural gas in the form of CNG to drive the transport sector.”
On when the agreement will become operational, he said it took immediate effect, assuring that hurdles that may help slow down the project would be dismantled.
Ekpo said, “We have started everything today. It is left for the party concerned to perfect everything and I don’t think it will take a longer time.”
Meanwhile, MDGIF, Executive Director, Mansur Kuliya, said the agreement was in consonance with the mandate to provide incentive for CNG.
He noted that aside from having the duty to support President Bola Ahmed Tinubu agenda, the Fund has the mandate to deepen the domestic gas market.
According to him, the agreement was an indication of similar projects that are underway. The Chief Executive Officer said apart from reducing the cost of transportation, the agreement will culminate in the reduction of the carbon footprint.
According to her, the project will start with the target of fast tracking gas for transport and power in Lagos State.
