Three companies – PI-CNG Limited (PI-CNG), Cape Mano Energy and Petroleum Limited (Cape Mano) as well as TSL Engineering Limited (TSL), on Thursday, signed a Memorandum of Understanding (MOU), setting out a framework for cooperation towards accelerated deployment of gas infrastructure across Nigeria.

Under the MOU, the parties intend to incorporate a special purpose vehicle to serve as a consortium company through which they will identify, develop and implement strategic midstream and downstream gas infrastructure projects in line with the Federal Government’s gas expansion agenda.

The consortium’s scope covers Compressed National Gas (CNG) mother stations, CNG daughter stations, mini-Liquified Natural Gas (LNG) plants and LNG/CNG transportation fleets.

Speaking at the ceremony, Chairman, PI-CNG, Barrister Ismaeel Ahmed, described the MOU as a significant step forward, and expressed optimism about rapid deployment of CNG systems nationwide through the partnership.

Also, the Chief Executive Officer, Cape Mano, Ms Telia Urey, commended PI-CNG for the exceptional work in creating an environment for the development of CNG infrastructure nationwide.

“Through this partnership, we intend to expand on this work and support the development of this infrastructure to include mother stations, daughter stations, mobile storage and more.”

Urey emphasised Cape Mano and TSL Engineering’s technical and financial capacity to deliver on the MOU. Under the agreement, the consortium will be governed by a five-member Board of Directors comprising two representatives from PI-CNG, one each from Cape Mano and TSL, and one independent industry expert to be agreed by all parties.

A joint management team is expected to oversee the day-to-day execution across legal and government relations, operations, finance, investment and commercial strategy as well as stakeholder relations.

Projects will also be selected jointly on the basis of technical feasibility, financial viability and impact on gas utilisation, with a definitive project agreement to be signed for each approved project.

The consortium will draw on multiple funding sources, including private equity, development finance, government-backed funding mechanisms and international financing.

PI-CNG is a strategic programme launched by the government to provide more affordable and environmentally friendly fuel alternatives for Nigerians while Cape Mano Energy & Petroleum Limited is an oil and gas infrastructure development company operating in partnership with international original equipment manufacturers of oil and gas infrastructure systems.

Meanwhile, TSL Engineering Limited is an engineering, procurement and construction company operating within the country.