Group managing director of the Nigerian National Petroleum Corporation [NNPC] Dr. Maikanti Baru has assured that that Nigeria’s Liquefied Petroleum Gas (LPG) production would increase to about 5million tons per annum from the current 3million tons upon the completion of the ongoing projects. He said the Corporation was currently implementing some key initiatives aimed at consolidating and expanding its footprint across the LPG business value chain.
Baru, who made this assertion at the Argus West Africa LPG conference which yesterday held in Abuja, expressed concern that stakeholders were still not forthcoming with solutions to unlock the economic potentials the LPG sector. “As we speak today, Nigerian energy mix is dominated by biomass-based fuels which account for about 82%, while natural gas accounts for just 8.8%. This implies a very high potential for explosive growth in the LPG business which will enable more players to come onboard”, he said.
The GMD who was represented by his technical assistant, downstream, Mr Abdulkabir Ahmed contended that the challenges faced in the nation’s LPG sector provide opportunities for people from all strata of the Nigerian society to make a fortune. According to him, the infrastructural bottlenecks and lack of institutional and commercial regulatory framework which bedevilled the gas sector could be exploited and converted into wealth-creating opportunities.
“We see the need to put in place relevant policies and regulations to stimulate the industry and encourage LPG utilization, while the infrastructure deficits provide opportunities for investments to play critical roles in the industry. From large scale to medium and small scale enterprises, there is a place for everyone in the Nigerian LPG business landscape”, he stated.
He called on other stakeholders to invest in the sector as the corporation was committed to the accelerated development of the domestic gas market to significantly drive the multiplier effect of gas. The NNPC boss stated that contrary to the thinking that Liquefied Petroleum Gas (LPG), also known as cooking gas, is only for a certain class of people. “The LPG market in Nigeria has room for everyone to operate,” he said
READ ALSO NNPC denies alleged existence of $3.5bn fuel subsidy fund
Also speaking at the conference, the managing director and chief executive officer designate of the Nigeria Liquefied Natural Gas [NLNG] Shipping Management Limited (NSML), Mr Ahmed Abdulkadir, affirmed that in spite of the numerous challenges facing the LPG sector, NLNG had recorded significant progress in the last 10 years and was committed to the LPG market.
Earlier in his opening remarks, the senior vice president, Argus UK, Mr Phil Shaw, commended the NNPC for its sound initiatives and critical roles in building a gas-driven economy. He also appreciated the active support of the corporation towards organizing the first Argus LPG conference in West Africa.