…boost foreign direct Investment (FDI)
With the partnership between the European Union and the Federal Government on gas infrastructure, it is expected that international oil companies operating in Nigeria, many of which are from Europe may rescind their decisions that have held back investment in the oil and gas sector.
The European Union (EU) and the Federal Government have expressed a renewed interest to put the mechanism in place to fund gas projects in Nigeria to guarantee energy security in Africa and Europe.
The EU made this known at the weekend when Timipré Sylva, Minister of State for Petroleum Resources, received Matthew Baldwin, Deputy Director-General, EU Energy Platform Task-Force in his office in Abuja.
The EU delegation have within four months visited the Nigerian Minister of State for Petroleum, just as they have equally met other key ministries with relevant roles to play in guaranteeing energy security.
According to the minister, this development would hasten the desire of the EU to guarantee alternative gas to Russia.
He described the assistance which covered security, technology development, financing, and private sector investment as worthwhile because finally, it enabled Nigeria to be on the same page with the rest of the world.
Sylva, who was critical of the haste with which the EU and Western nations took out investment in fossil fuel, said in years to come fossil fuel would be very relevant while gas would be used as a transition fuel.
He underscored the need for the EU to appeal to their financial institutions to be willing to relax stringent rules and remove bottlenecks bothering loans to enable sourcing funds under conducive agreement.
“We have always said that we are committed to gas as a transition fuel and today we are speaking the same language with the EU.
“We are discussing with the EU on how to collaborate on developing technology and other support they can give Nigeria.
“They are responsible for the policy that will drive the investment,” he said.
On security, he said it was another area of cooperation because they went to the Niger Delta Region to see for themselves what the security situation was, adding that part for the solution itself also required technology.
He said the region would be secured for oil and gas investments to continue to thrive while production quota would be shored up.
As part of the intervention to curb the insecurity in the region, he said there was a four-legged collaboration which involved the government, security agents, oil companies and communities.
Baldwin had earlier reinstated EU’s commitment to making the gas project a reality and expressed optimism for a sustainable partnership for the energy transition in Nigeria.
“I am very pleased to be working with you in a big way private sector investment is guaranteed; the more the security situation can be improved in the Niger Delta Region, the more investment we will see,” he said.
The ongoing AKK Gas Project and Trans Sahara Gas Pipelines (TSGP) project will present a huge opportunity for Nigeria and others to tap into the European markets.
