The Federal Government is set to inject $3 billion into the gas sector through the Gas Sales Purchase Agreement (GSPA) for the Brass Methanol Project, according to Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas). Ekpo announced the investment during the 2024 NAEC Annual Strategic International Conference, held in Lagos.
The minister, represented by Senior Technical Adviser Abel Nsa, highlighted the Federal Government’s efforts to expand access to compressed natural gas (CNG) across the country as part of its strategy for cleaner and more affordable energy. He noted that CNG stations are being deployed nationwide by the Nigerian National Petroleum Company Limited (NNPCL) to facilitate the transition to cleaner fuels.
Ekpo also introduced the Ride Share CNG Conversion Incentive Programme and the My CNG App, initiatives offering a 50% discount for rideshare drivers. “This programme promotes CNG as a cleaner, more affordable fuel option for transportation while easing the financial burden on drivers and encouraging the shift to cleaner energy,” he stated.
The minister emphasised that significant progress that has been made in commissioning gas processing facilities across the country. Notable projects include the 3.1 million metric tonnes per day CNG plant in Ogun State, a 5.2 MMscfd CNG/autogas facility in Lagos, and the 300 MMscf/d Kwale Gas Gathering Hub in Delta State.
“These projects not only boost gas supply but also create jobs, stimulate local economies, and increase access to clean energy,” Ekpo explained. He urged Nigerians to fully harness the potential of gas to ensure reliable and cleaner energy delivery.
Ekpo also emphasised the government’s focus on enhancing Nigeria’s standing in the global gas market while stimulating the local economy through job creation and industrial expansion. “We are making significant strides in unlocking investments,” he said. “This $3 billion investment will not only strengthen Nigeria’s global gas position but will also expand our industrial base and stimulate the local economy.”
The minister also highlighted the government’s establishment of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), created under the Petroleum Industry Act (PIA) 2021, to address financing gaps in infrastructure development. “This fund will help ensure that Nigeria’s gas resources are efficiently harnessed and delivered to the market,” Ekpo said.
On international cooperation, Ekpo discussed Nigeria’s ongoing Strategic Energy Dialogue with the United States, which has resulted in several commitments to further support the country’s gas sector. These include technical assistance from the US Department of State, a $75-85 million technical support package from USAID’s Power Africa, and over $1.3 million in clean energy technical support from the US Department of Energy’s Net Zero World Programme.
Ekpo also pointed to Nigeria’s progress in reducing gas flaring and methane emissions. He highlighted the commissioning of the AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the ANOH-OB3 Gas Pipeline as steps that will continue to drive growth in the gas sector.
“The ongoing efforts to reduce emissions and build a more sustainable energy sector are laying the groundwork for Nigeria’s energy future,” Ekpo concluded.
