By John Ikani
Laudable efforts by the Nigerian Content Development and Monitoring Board (NCDMB) to propel the growth of 11 gas and petrochemical companies didn’t go unnoticed in the recently released Fiscal Allocation and Statutory Disbursement (FASD) audit report by the Nigerian Extractives Industries Transparency Initiative (NEITI).
The disclosed figures reveal a substantial investment of N46.8 billion ($122.05 million) by the Nigerian Content Development and Monitoring Board (NCDMB) between 2020 and 2021.
The funds were strategically deployed to secure equity interests and facilitate critical project development in various companies.
The targeted investments aimed at fostering the establishment of essential infrastructure, ranging from a modular refinery to Liquified Petroleum Gas (LPG) manufacturing plants, gas processing facilities, and LPG storage/filling units.
Below is a breakdown of the companies and the corresponding investment amounts:
• Duport Energy Company Limited – N5,692,500,000
• Eraskon Nigeria Limited – N3,605,000,000
• Rungas Prime Industries Limited – N1,918,821,454
• Transel Gas Ltd – N1,225,700,000
• Bunoor Integrated Energy Limited – N1,297,800,000
• Rungas Alfa Fze Limited – N2,258,025,000
• Atlantic International Refinery and Petrochemical Limited – N13,282,500,000
• Nedo Gas Development Company Limited – N3,795,000,000
• Butane Energy Limited – N1,434,510,000
• Brass Fertilizer & Petrochemical Company Limited – N8,195,000,000
• LADOL Services FZE Limited – N4,097,500,000
It is noteworthy that the NCDMB has consistently voiced its commitment to supporting local enterprises in the pursuit of projects spanning modular refining, gas processing, gas distribution, power generation, and manufacturing.
Beyond local ventures, the Board also holds a keen interest in advancing LPG and compressed natural gas (CNG) utilization within Nigeria.
Recognizing the pivotal role of natural gas and petrochemicals in shaping future energy systems, especially in emerging economies like Nigeria, aligns with the insights shared at the September 2023 Gastech conference in Singapore.
During the conference, experts echoed unanimous support for natural gas as the optimal choice for the ongoing energy transition. Nigeria’s Minister of State for Gas reiterated the country’s dedication to the “decade of gas” and invited investments to bolster increased gas production.
Similarly, Egypt’s Minister of Petroleum and Mineral Resources emphasized the imperative need for substantial investments in the natural gas sector, underlining its pivotal role in the broader energy transition.
In a call for inclusive dialogue on decarbonization at the same conference, the Secretary General of the International Energy Forum urged stakeholders to prioritize progress over perfection.
The acknowledgement of natural gas’s role in global decarbonization efforts underscored the importance of fostering collaborative efforts.
The October 2023 World Oil Outlook from the Organization of the Petroleum Exporting Countries (OPEC) aligns with the trend, forecasting the continued expansion of refining capacity in developing countries.
The upcoming projects, often integrating petrochemical elements, signify a shift towards advanced and integrated facilities in the refining sector of developing economies.