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Deregulation: FG introduces infrastructure fund for auto gas transition

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  The Federal Government says that it will take into consideration the infrastructure fund for the midstream and downstream sector destined for the development of gas infrastructure to update the Auto Gas Transition Chief Timipre Sylva Minister of State for Petroleum Resources revealed this on Monday in Abuja during a meeting with oil traders on the Compressed Natural Gas CNG Auto Gas Transition Programme The meeting was organized to discuss private sector commitments and structures that need to be put in place before the removal of subsidies and strategies on how to deploy natural gas vehicles NGVs in the shortest possible time The conversion of Auto Gas was part of the structure and building block that the government planned to implement for the total deregulation of alternative means to avoid the full weight of the impact of the elimination of subsidies on the citizens Sylva told oil traders that midstream and downstream regulators already had an infrastructure development fund earmarked to develop the sector So there will be some collaboration between you and the infrastructure fund to set things up for the auto gas conversation We will present the fund together with the original equipment manufacturers OEM of some countries to connect and evaluate The burden will not be on you now which is why we brought you on board as funding is available to enable this aspect of your business The government is coming in we will provide 50 per cent of the financing while the country OEMs will provide another 50 per cent for you to evaluate The program will start in March he said Chief Timipre Sylva plans big for auto gasThe Minister recalled that the agreement around the Auto Gas policy a year ago was clear that there must be a critical number of converted vehicles and the corresponding critical number of supply stations in place for the system to start up Otherwise we will have a situation where the converted vehicles will not have a place to refuel or the stations will not have converted vehicles to fill The conversion process has been underway and we have been talking to the OEMs To do this we agreed that we needed to have a million vehicles converted in the first place he said According to him the government decided to partner with credible local marketers to engage with OEMs to install their system in Nigerian stations and convert the stations Mr Olumide Adeosun Chief Executive Officer Ardova Plc and president of the Major Oil Marketers Association of Nigeria MOMAN praised the decision to use CNG cars as a remedy against rising fuel costs and to soften the impact of deregulation on Nigerian citizens Adeosun explained that so far it had established a working group on how best to implement the conversion determining the scope of feasibility supply and demand including infrastructure price and investment He noted that in general part of what was needed to make the investment case was some of the core infrastructure pieces around the supply infrastructure for CNG we are willing to go into co partnership models Mr Tunji Oyebanji CEO of 11 Plc also lamented that since CNG has already started in Benin Edo state it should have been replicated across the country Oyebanji who noted that although it has not proven to be a profitable venture even with significant infrastructure he sought additional support from the government to upgrade the transition from gas to cars Mr Clement Isong CEO of MOMAN who underlined the need for consistency in government communication added that marketers are ready and committed to updating the project and always aligned with government policy Mr Igwe Christian representative of DAPMAN and CEO of Mainland Oil and Gas thanked the minister for the laudable project and called for a lower interest rate on the subsidized and downstream equipment to facilitate the construction of the conversion center The highlight of the event was the presentation of the strategy for the implementation of the transition program Gas by the ministry Brenda Ataga Keep reading Source NAN
Deregulation: FG introduces infrastructure fund for auto gas transition

1 The Federal Government says that it will take into consideration the infrastructure fund for the midstream and downstream sector destined for the development of gas infrastructure to update the Auto Gas Transition.

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2 Chief Timipre Sylva, Minister of State for Petroleum Resources, revealed this on Monday in Abuja during a meeting with oil traders on the Compressed Natural Gas (CNG)/Auto Gas Transition Programme.

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3 The meeting was organized to discuss private sector commitments and structures that need to be put in place before the removal of subsidies and strategies on how to deploy natural gas vehicles (NGVs) in the shortest possible time.

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4 The conversion of Auto Gas was part of the structure and building block that the government planned to implement for the total deregulation of alternative means to avoid the full weight of the impact of the elimination of subsidies on the citizens.

5 Sylva told oil traders that midstream and downstream regulators already had an infrastructure development fund earmarked to develop the sector.

6 “So there will be some collaboration between you and the infrastructure fund to set things up for the auto gas conversation. We will present the fund together with the original equipment manufacturers (OEM) of some countries to connect and evaluate.

7 “The burden will not be on you now, which is why we brought you on board, as funding is available to enable this aspect of your business.

8 “The government is coming in, we will provide 50 per cent of the financing, while the country OEMs will provide another 50 per cent for you to evaluate. The program will start in March,” he said.

9 Chief Timipre Sylva plans big for auto gas

10 The Minister recalled that the agreement around the Auto Gas policy a year ago was clear, that there must be a critical number of converted vehicles and the corresponding critical number of supply stations in place for the system to start up.

11 “Otherwise we will have a situation where the converted vehicles will not have a place to refuel or the stations will not have converted vehicles to fill.

12 “The conversion process has been underway and we have been talking to the OEMs. To do this, we agreed that we needed to have a million vehicles converted in the first place,” he said.

13 According to him, the government decided to partner with credible local marketers to engage with OEMs to install their system in Nigerian stations and convert the stations.

14 Mr. Olumide Adeosun, Chief Executive Officer, Ardova Plc. and president of the Major Oil Marketers Association of Nigeria (MOMAN), praised the decision to use CNG cars as a remedy against rising fuel costs and to soften the impact of deregulation on Nigerian citizens.

15 Adeosun explained that so far it had established a working group on how best to implement the conversion, determining the scope of feasibility, supply and demand, including infrastructure, price and investment.

16 He noted that, in general, part of what was needed to make the investment case was some of the core infrastructure pieces around the supply infrastructure for CNG, we are willing to go into co-partnership models.

17 Mr. Tunji Oyebanji, CEO of 11 Plc, also lamented that since CNG has already started in Benin, Edo state, it should have been replicated across the country.

18 Oyebanji, who noted that although it has not proven to be a profitable venture even with significant infrastructure, he sought additional support from the government to upgrade the transition from gas to cars.

19 Mr. Clement Isong, CEO of MOMAN, who underlined the need for consistency in government communication, added that marketers are ready and committed to updating the project and always aligned with government policy.

20 Mr. Igwe Christian, representative of DAPMAN and CEO of Mainland Oil and Gas, thanked the minister for the laudable project and called for a lower interest rate on the subsidized and downstream equipment to facilitate the construction of the conversion center.

21 The highlight of the event was the presentation of the strategy for the implementation of the transition program, Gas, by the ministry, Brenda Ataga.

22 Keep reading

23 Source: NAN

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