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FG's ₦250 billion intervention in gas industry fails to improve production

The Committee on Gas has initiated an investigative hearing on the disbursement of the fund disbursed.

FG's ₦250 billion intervention in gas industry fails to improve production[Guardian]

Nigeria’s gas production over the years has maintained a steady growth from 39 billion cubic meters (bcm) as of 2012, to 49 bcm as of 2020 according to industry body, The Energy Institute.

The decline which indicated a drop of about 11% was noticed in 2021 when the gas output suddenly crashed to 45 bcm and further lost 5 bcm when the volume dropped to about 40.4 bcm last year.

According to data from the Energy Institute, the decline in production output was traced to a low export volume of liquefied natural gas (LNG), which declined by 16% to 19.6 bcm in 2022.

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The low export volume in turn, reduced Nigeria’s global share in LNG exports to 4%.

The drop in gas production output comes amid the NGEP ₦250 billion fund provided by the federal government through the CBN.

The Committee on Gas headed by the Senator representing Cross River North, Jarigbe Agom Jarigbe, has initiated an investigative hearing on the disbursement of the ₦130.8 billion NGEP intervention fund disbursed to 15 companies for the construction of Compressed Natural Gas conversion centres.

Some of the companies involved include Nipco Gas Ltd- ₦25 billion; Nipco Plc- ₦5 billion; Hyde Energy Ltd- ₦2 billion; Lee Engineering and Construction and Company- ₦15 billion.

Others are, Pinnacle Oil and Gas Fze- ₦10 billion; Transit Gas Limited- ₦8 billion; Amalgamated Oil Company Nig Ltd (AMOCON)- ₦5 billion; Gas Nexus Ltd- ₦10 billion and First Modular Gas Systems Limited- ₦4.3 billion.

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They also included Novagas Limited- ₦1 billion; Greenville Liquified Natural Gas Company-₦10 billion; AP LPG Limited- ₦8 billion and Dangote Oil Refinery- ₦5 billion.

The Delta State Government, according to Jarigbe, got ₦20 billion while Mob Integrated Services Limited received ₦2.5 billion.

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