On Thursday, May 29, 2025, the Nigerian Federal Government, through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), signed joint venture investment agreements with ten companies to develop gas processing plants and related infrastructure, aiming to unlock Nigeria’s vast gas potential, estimated at over 206 trillion cubic feet. The agreements, formalized in Abuja, include the Joint Venture and Operating Agreement, Joint Venture Equity Agreement, and Joint Venture Accounts Agreement, involving companies such as Ant Energy Limited, Sub Sea 9 Gas, Waterdance International Concepts, and LNG Arete, alongside others like Wishnefisky Global, Geospectra Energy, Deemah Integrated Services, Sonic Petroleum, VTT LNG West Africa, and Amari Energy Resources. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized that these deals align with national priorities to foster growth, enhance energy security, and build a resilient economy, as reported by Leadership and Naija News.
The projects include six gas processing plants to produce marketable natural gas in liquefied or alternative forms, three compressed natural gas (CNG) refueling stations to promote domestic gas use for transportation and industrial applications, and one bulk liquefied petroleum gas (LPG) storage facility to ease supply chain constraints, according to MDGIF Executive Director Oluwole Adama. Ekpo noted that in the first year of President Bola Tinubu’s administration, MDGIF supported six midstream and downstream companies, driving innovation in gas processing, distribution, and utilization. These initiatives, part of the Decade of Gas vision, are expected to create jobs, support industries from agriculture to manufacturing, and align with the Petroleum Industry Act (PIA) of 2021, which established MDGIF to mobilize private capital for gas infrastructure across Nigeria’s six geopolitical zones.
In a related development, the Federal Government launched Project CNG Sprout on May 29, 2025, to establish CNG conversion and refueling infrastructure in 20 universities nationwide, funded by MDGIF. Ekpo, speaking at the launch in Abuja, highlighted the project’s aim to provide affordable transportation for students and staff through CNG-powered buses and tricycles, reducing costs amid rising fuel prices post-subsidy removal. A notable MDGIF-backed project includes a $27.3 million mini-LNG facility in Ajaokuta, Kogi State, where LNG Arete, P-CNGi ($6 million), and MDGIF ($9.3 million) hold stakes, set to supply CNG across northern Nigeria within 12–16 months, boosting industrial and transport sectors. Posts on X, such as from @nigeriantribune and @IndependentNGR, reflect optimism about the gas sector’s potential, though some users question project execution timelines.
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