This is according to the recently released Fiscal Allocation and Statutory Disbursement (FASD) audit report from the Nigerian Extractives Industries Transparency Initiative (NEITI).
The report highlighted the fact that the Nigerian Content Development and Monitoring Board (NCDMB) between 2020 and 2021, the NCDMB invested a substantial amount of N46.8 billion ($122.05 million) in various companies to acquire equity interests and support the development of critical projects. The investments aimed at fostering the establishment of key infrastructure, including a modular refinery, Liquified Petroleum Gas (LPG) manufacturing plant, gas processing plants, and LPG storage/filling facilities.
Here 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, Bunion 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 important to note that the NCDMB had previously said it is committed to supporting local firms to set up projects covering modular refining, gas processing, gas distribution, power generation, and manufacturing.
The Board also has interests in deepening LPG and compressed natural gas (CNG) use in Nigeria.
Natural gas and petrochemicals will play a major role in future energy systems, especially in emerging economies like Nigeria. At the September 2023 Gastech conference in Singapore, experts unanimously affirmed natural gas as the optimal choice for the energy transition.
During the event, Nigeria’s Minister of State for Gas highlighted the country’s commitment to the “decade of gas,” inviting investments to support increased gas production.
Meanwhile, Egypt’s Minister of Petroleum and Mineral Resources stressed the need for substantial investments in the natural gas sector, acknowledging its pivotal role in the energy transition.
Also, at the conference, the Secretary General of the International Energy Forum also emphasised the importance of inclusive dialogue on decarbonisation, urging stakeholders to prioritize progress over perfection and acknowledging the role of natural gas in global decarbonization efforts.
According to the October 2023 World Oil Outlook from the Organization of the Petroleum Exporting Countries (OPEC), developing countries are anticipated to continue expanding their refining capacity by constructing new greenfield refineries.
These upcoming projects are likely to be intricately designed, often incorporating petrochemical elements. This indicates a trend towards advanced and integrated facilities in the refining sector of developing economies.