The Federal Government has expressed its determination to catalyse investments in the midstream and downstream sectors of the petroleum sector to create employment for youths and maximise local content opportunities.
Minister of State for Petroleum Resources, Timipre Sylva gave the assurance when he opened the Nigerian Content Midstream and Downstream Oil and Gas Summit organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos.
He stated that the industry is exploring the opportunities in the sector. He commended the Board for fostering dynamism in the sector.
He acknowledged that the sector did not receive the deserved focus in the past, but hinted that the situation would change, adding that the Petroleum Industry Act (PIA) contains incentives to attract investment in gas development, and provide care for host communities.
He charged industry stakeholders to unlock the natural gas and domestic production potential.
NCDMB Executive Secretary, Simbi Wabote, affirmed that the Board is keen to maximise local content opportunities in the sector.
“This provides means to absorb output of our human capacity development programmes in the form of job opportunities,” he added.
According to Wabote, the profit margin is also attractive in the midstream and downstream, especially in the LPG distribution value chain and this serves as an incentive to players.
He emphasised the need to maximise the potential of the sector to ensure energy security and national pride, adding that the direct social impact of a productive and efficient midstream and downstream sector of the industry also needed to be maximised.
Wabote further explained that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act established NCDMB as the regulator of Nigerian Content in the entire spectrum of the industry.
He added that the Board’s regulatory role is not to stifle the industry, but to provide enabling, and inclusive, business environment for businesses.
He listed the achievements as its partnership with Waltersmith, which resulted in the delivery of the 5,000 barrels per day modular refinery in Imo State, the 2,500 barrels per day Duport Modular Refinery in Edo State, which will be inaugurated this year as well as the 2,000barrels per day Atlantic Refinery and the 12,000barrels/day Azikel Hydro-skimming Refinery in Bayelsa state, which are under construction.
Other achievements of the Board included the partnership with the NNPC to construct a 50,000litres petroleum products terminal in Brass, the partnership with Bunorr Integrated Energy Limited for the establishment of 48,000 litres/day Base Oil Production Facility in Port Harcourt, Rivers State, which is due for inauguration this year and the ongoing construction of the Eraskon Lube Oil factory in Gbarain, Bayelsa State.
On the LPG value chain, Wabote stated that the Board is partnering some investors to develop their projects. Some of them included the partnership with NEDO Gas Processing Company in Kwale, Delta State for the establishment of 80MMscfd of Gas Processing Plant and a 300MMscfd Kwale Gas Gathering hub, partnership with Triansel Gas Limited in Koko, Delta State for the establishment of 5,000MT LPG Storage and Loading Terminal Facility and partnership with Brass Fertiliser for the development of a 10,000MT/day Methanol Plant at Odiama in Brass.
Others are the partnership with Butane Energy to roll out LPG Bottling Plants and Depots in Abuja and 10 northern states and partnership with Southfield Petroleum for the establishment of 200 MMscfd gas processing plant at Utorogu, Delta State to produce 123,000MTPA of LPG, which is about 10 per cent of LPG demand nationwide.