CBN’s intervention and integrated gas facility in Ologbo
Sir: As part of its efforts at stimulating finance to critical sectors of the economy, the Central Bank of Nigeria (CBN) introduces the N250 billion intervention facilities to help stimulate investment in the gas value chain.
The objectives of the facility include i. Improved access to finance for private sector investments in the domestic gas value chain; ii. Stimulate investments in the development of infrastructure to optimize the domestic gas resources for economic development; iii Fast-track the adoption of CNG as the fuel of choice for transportation and power generation, as well as LPG as the fuel of choice for domestic cooking, transportation, and captive power; iv. Fast-track the development of gas-based industries particularly petrochemical (fertilizer, methanol, etc) to support large industries, such as agriculture, textile, and related industries; v. Provide leverage for additional private sector investments in the domestic gas market; vi. Boost employment across the country.
The government through the Central Bank of Nigeria (CBN) is introducing the N250 billion intervention facilities to help stimulate investment in the gas value chain. The intervention is in gas processing plants and small-scale petrochemical plants, gas cylinder manufacturing plants, autogas conversion kits or components manufacturing plants, CNG primary and secondary compression stations, manufacturing of LPG retail skid tanks and refilling equipment, and other mid to downstream gas value chain related activity recommended by the Ministry of Petroleum Resources, MPR.
I must commend Godwin Emefiele, the governor of CBN, and his team for their vision and investment in oil and gas. Nigeria’s President Muhammadu Buhari, recently, commissioned the Nigeria Petroleum Development Company, NPDC, Integrated Gas Handling Facility in Ologbo, Edo State. The Liquefied Petroleum Gas plant that receives gas from the Oredo Field, estimated to be the largest onshore plant in Nigeria is to process wasted or flared gas to produce several Natural Gas Liquids, NGL to create wealth.
Ologbo, Edo State, has become an oil city with integrated gas facilities and a modular refinery in Nigeria. The investment decision aligns with the vision to be the catalyst for industrialisation of Nigeria’s oil and gas industry and its linkage sectors, as well as the goal to support the Federal Government’s policy to expand the country’s existing refining capacity through the use of modularly constructed refineries.
Nigeria has moved a step closer to the dream of full utilisation of the country’s abundant gas potentials including Liquefied Petroleum Gas (LPG) with gas and modular refinery at Ologbo.
President Muhammadu Buhari has said that the commissioning of the Integrated Gas Handling Facility and LPG Processing and Dispensing Plants by the Nigerian Petroleum Development Company (NPDC) in Ologbo will promote economic development.
The Oredo Integrated Gas Handling Facility and its associated NGLs depot will be delivering 240,000 metric tonnes of commercial-grade Liquefied Petroleum Gas and Propane. It will also deliver about 205 million standard cubic feet per day of lean gas to the domestic market.
Inwalomhe Donald wrote from Ologbo, Ikpoba Okha Local Government, Edo State.
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