Midstream oil and gas needs $50bn investment – NMDPRA boss

From Tony John, Port Harcourt

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that the country requires investments of between $30 billion and $50 billion in the midstream oil and gas sector to fully unlock its economic potential.

The Authority Chief Executive, Saidu Mohammed, disclosed this during a tour of the Indorama Petrochemical and Fertiliser Facility in Port Harcourt, Rivers State, yesterday, as part of a three-day operational visit to selected midstream and downstream facilities in the state.

Mohammed described the midstream aspect of the oil and gas sector as critical but capital-intensive, adding that significant funding is necessary to put Nigeria on the right track, not only in energy supply but also in value addition and secondary recovery from hydrocarbon resources.

The ACE said that increased investments in gas processing and derivative industries like fertiliser and urea production would eliminate the need for imports and strengthen the nation’s industrial base.

He stated: “With the expansion of facilities like Indorama and other similar projects across the country, I am sure that in the next 24 months, Nigeria will join the league of urea exporting countries.

“What we have seen in Indorama is really a manifestation of what Nigeria needs to have. We need a lot of these in the midstream.

“Definitely, fertiliser plants and any value addition thing that we have on the hydrocarbon sources is what is needed for this nation to propel.

“These dreams were there, but for some reasons or the other, we have not been successful. But, today, we have found the right footsteps in partnership with the private sector. Indorama has really shown us that growth is growth and we can continue to grow in that same direction.

“We have no business importing any of those things and behold, with the expansion of what is going on today at Indorama and many other places including Dangote fertilisers, I am sure that in the next 24 months, Nigeria will join the league of Ureah exporting countries and that is where we should be.”

Mohammed further emphasised that Nigeria must grow from being solely a producer of raw hydrocarbons to a nation known for processing, manufacturing and exporting value-added petroleum products.

According to the NMDPRA boss, the transition is key to Nigeria’s sustainable economic growth.

He assured investors that the Authority remains committed to providing regulatory support and creating an enabling environment that will encourage further investments in the midstream oil and gas sector.

Earlier, the Chief Executive Officer of Indorama Petrochemicals and Fertiliser Company, Munish Jindal, commended the NMDPRA boss for the visit to enable the regulatory body to get a firsthand report on the operations of their company.

Jindal noted the contributions of Indorama Petrochemicals to the growth of the country’s economy, assuring of the company’s commitment to the sustainability of the economy.