FG targets $10.38bn earning from cooking gas in 2018, if…

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By Prince Okafor

THE Federal Ministry of Petroleum Resources has estimated that $10.38 billion can be generated by 2018, if 50 percent of the current kerosene and firewood users switch over to Liquefied Petroleum Gas, LPG, popularly known as cooking gas.

In the recently approved National Gas Policy, the ministry sated: “It is estimated that about $10.38 billion could be generated for the economy if 50per cent of the current kerosene and firewood users switch over to LPG by 2018. This switch will also help create over one million skilled jobs in various segments of the LPG supply value chain.

In the same vein, the utilisation of LPG can also generate far reaching positive outcomes for our public health and environment as well as saving cost for government at all tiers.” The policy noted that, the overall goal of the government is to promote a wider use of the product in domestic, power generation, autogas and industrial applications towards the attainment of five million metric tonnes, utilisation in five years.

However, the President of the Nigerian Liquefied Petroleum Gas Association, NLPGA, Mr. Dayo Adeshina, told Vanguard that the LPG market increased in 2016 to 550, 000 MT. Adeshina said, “It’s still not great news. We estimate our market to be at least five million tonnes, but compared to where we were before it is a significant increase.”

He noted that the nation was still not where it should be, being the second largest producer after Algeria in terms of volume, stating that, “In terms of consumption we are still very dismal. For a population size of 194 million people only five per cent of the population use LPG, 60 per cent use firewood, 30 per cent use kerosene, while five per cent uses coal. In Calabar, there is an LPG terminal that is going to come on stream by September. We have Stock Gas in Port Harcourt.

In terms of storage, there is going to be a significant increase in storage of the product by different investors. The government also is looking at the domestic LPG programme. “With that, the government hopes that it can transit four million homes with LPG in the next two years and take another 15 million to 20 million homes over five years.”

 

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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