The Federal Government says it has introduced a N250 billion intervention facility to stimulate finance and motivate investors in the gas value chain for sustainable business development in the country.
Mr Bitrus Nabasu, the Permanent Secretary, Ministry of Petroleum Resources, disclosed this while briefing newsmen, on Sunday in Abuja.
Therefore, in an effort to stimulate finance to this critical sector, the Ministry of Petroleum Resources in partnership with the Central Bank of Nigeria (CBN), introduced a N250 billion intervention facility to help motivate investment in the gas value chain.
He said the large scale projects under the intervention would be financed under the Power and Airlines Intervention Fund (PAIF) in line with existing guidelines and regulations of the Fund.
According to him, the small scale projects and retail distributions will be financed by NIRSAL Micro Finance Bank and other participating institutions under the Agribusiness Small and Medium Enterprises Investment Schemes (AGSMEIS).
The facility, he said, was designed to improve access to financing for private sector investment in the gas value chain, stimulate investment in the development of infrastructure to optimise the domestic gas resources for economic development
He listed other objectives of the facility to include provision of platform to fast track the adoption of Compressed Natural Gas (CNG) as the fuel of choice for transportation and power generation as well as Liquefied Natural Gas (LPG) for domestic cooking, transportation and captive power.
“It will also fast track the development of gas-based industries particularly petrol chemicals (Fertiliser, Methanol, etc), to support large industries such as agriculture, textile and related industries.
Provide leverage for additional private sector investment in the domestic gas market and boost employment across the country,’’ he said
The Permanent Secretary said the facility would also finance gas processing, small scale petrochemical and gas cylinder manufacturin plants as well as LCNG regasification modular systems.
Nabasu said it would equally finance Auto Gas conversion kits or component manufacturing plants; CNG primary and secondary compression station, micro distribution outlets and service centers for LPG.
In addition, the facility will service the development and enhancement of auto gas transportation system conversion and distribution infrastructure, enhancement of domestic cylinder production and distribution by manufacturing plants
Also; LPG wholesale outlet and many other mid to downstream gas value chain related activity recommended by the ministry,’’ he said, adding that parties with the capacity to develop and operate any of the fore listed projects are expected to demonstrate project development experience.
According to him, interested parties will need to demonstrate technical and commercial capacity as well as show evidence of experience and capacities to engage in their proposed businesses to enable them access the fund.
At a minimum, interested parties shall provide general information of interested parties, past experience and evidence of technical capabilities and organisational structure,’’ he said