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National Gas Expansion Program (NGEP) key enabler to the diversification—FG

The Honourable Minister of State, Petroleum Resources, His Excellency, Chief Timipre Sylva, has described the National Gas Expansion Program (NGEP) as key enabler to the diversification and growth of Nigeria’s broader economy.

Speaking at the Third (3rd) Quarter 2020 Ministry of Petroleum Resources (MPR) Ministerial Mandate Performance Scorecard Review, the Honourable Minister made it clear that a major demand trigger initiative is the establishment of MDCs nationwide to bridge the supply and accessories gap between the market and consumers. Efforts are also at advanced stage to ensure that some MDCs are in place for the October 1st roll out by the Honourable Minister.

According to him, the NGEP committee is focused on extending the MDC pilot scheme currently existing in some barracks in the FCT to all military and paramilitary barracks nationwide.

“Efforts are ongoing to engage the Managers of the Chevron Escravos gas to secure commitment of some LPG volumes for the domestic market.

“Also, the committee is committed to the development of Nigerian Gas based industries (NGI) from textile manufacturing to production of polymer resins and so extensive engagements were undertaken with the manufacturers Association and NLC to sensitize on this initiative. It is worthy of note that the polymer resins produced by Indorama is to serve as raw material for RUNGAS prime, the first LPG cylinder production facility with 400,000 units per annum composite cylinder manufacturing capacity at Polaku Bayelsa state.

The plant is currently under construction in partnership with NCDMB, after a groundbreaking ceremony by the Honorable Minister last week.

The committee’s central objective here is the creation of the enabling environment for gas based industries to thrive through the easing of availability restrictions and its attendant cost implications. Also engaging our attention is the removal of investment bottlenecks. These have combined over the years to stifle investments in the sector.

Business Hilights gathered that in view of the strong federal support for the scheme, the Minister has directed all Chief Executive Officers, CEOs of Ministries Departments and Agencies, MDAs and their top management staff to convert all official vehicles to run on autogas as a demonstration that the Muhammadu Buhari administration is serious with implementation of the National Gas Expansion Program, NGEP.

He also declared NGEP as the flagship program of the Petroleum Ministry said he had also surrendered his vehicles to be converted to dual fuel with use of either auto-Liquefied Petroleum Gas, or auto-Compressed Natural Gas.

In his words,  “I have surrendered my vehicles to the NGEP to convert all to dual fuel with use of either AutoLPG or AutoCNG. And on that premise, I now have the moral backing to direct that all CEOs and their able lieutenants do same by converting all their official vehicles to run on Autogas as a demonstration to the Nigerian people that indeed Government meant it when we declare this year “The Year of Gas”.

The NGEP is a programme put in place by the Minister as part of the 2020 drive of Nigeria as a year of Gas and also in furtherance of the domestic gas expansion programme of the current administration. It is designed to re-enforce, expand domestic Gas supply and stimulate demand in the country through the effective, efficient mobilisation and utilisation of all available assets, resources, and infrastructure in the country.