The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) otherwise known as Midstream and Downstream Gas Infrastructure Fund (MDGIF) has signed a Memorandum of Understanding (MOU) with IBILE Oil and Gas Corporation for the development of infrastructure for the Compressed Natural Gas (CNG).
Addressing reporters at the agreement signing ceremony in Abuja, the Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo, noted that the pact will pave the way for the firm to accelerate the penetration of CNG to drive the transport sector.
According to him, owing to the removal of the Premium Motor Spirit (PMS) petrol subsidy, the need for an MoU for an alternative fuel has become expedient.
His words: “It is an important moment in the history of this ministry and today, I have witnessed the signing of MoU between the NMDPRA with IBILE Oil and Gas Company.
“This will help them to develop the infrastructure for CNG. And of course, with the withdrawal of subsidy the alternative means now is the natural gas.
“So what they are coming in to do and the essence of this agreement or MoU is to fast track the penetration of natural gas in the form of CNG to drive the transport sector.”
Asked when the agreement will become effective, the minister said it took immediate effect.Ekpo said, “We have started everything today. It is left for the party concerned to perfect everything and I don’t think it will take a longer time.”
He vowed to ensure that he drives the parties to keep to the schedule in the agreement because Nigerians are eager to see the alternative fuel to petrol.
Meanwhile, MDGIF, Executive Director, Malam Mansur Kuliya, said the agreement was in consonance with the mandate to provide incentive for CNG.
TheNation
