LPG Offtakers contract: Masters Energy to crash LPG price

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….Targets 5,000 tonnes to boost distribution

Masters Energy is set to crash the price of Liquefied Petroleum Gas ( LPG) otherwise known as Cooking Gas following the appointment of the company as Offtaker by the Nigerian Liquefied Natural Gas ( NLNG) and additional investment in  the construction of bottling plants as well as  skid plants.

Executive Director ( Operations) Masters Energy Group Felix Eribo in reaction to enquiry by our correspondent disclosed that the plan to crash LPG price is enhanced with the appointment in February 2018 as Offtaker of the NLNG.This, he said was informed by the assessment of the company’s investment of multi-million Naira in the construction of bottling plants at Ojokoro in Lagos State and Enugu to make Refilling of LPG cylinders by users possible at the Grassroot. “ In modernizing and making LPG available for users, we have also made huge investment in the establishment of two skid plants in Port Harcourt,” he said.

Eribo added that the  milestone recorded by the company  with over 70 filling stations and Offtaker of the NLNG  is set to commence installation of LPG skids at its filling stations nationwide for effective distribution in the drive for increased utilization of LPG in Nigeria. He disclosed that the lifting of LPG as Offtaker from the facility of NLNG started with 500 tonnes cargo and is expected to reach 5,000 tonnes before the end of 2019. “ We have also acquired state of the art modern trucks for  effective distribution nationwide to bring down the price of LPG, “ he said.

Head, Gas & Business Masters Energy  Mr Fidelis Okarfor assured that following this contract by the NLNG as Offtaker, the company is set to crash LPG price, provide quality LPG at the accurate quantity to eliminate short changing  of consumers. The elimination according to him will help to encourage more people in Nigeria to adopt LPG.

“The best and most important policy of government that was introduced to promote investment in Nigeria’s LPG sector is the introduction of full deregulation, which means government is completely detached from LPG pricing mechanisms in Nigeria. This singular policy of Government then encouraged the major producers of LPG like the Nigeria LNG (NLNG) to intervene in the supply market, to sustain the envisioned growth, towards realising the market full potentials and helped Masters Energy to achieve the goal of making LPG available at the lowest price,”he added

Okarfor said:”Since around 2007 till now, LPG demand/supply market in Nigeria has grown from a mere 70,000MT/annum market to over 600,000MT/Annum, pulling along with it, massive investments in LPG infrastructure along the value chain.

The last 10 -12 years, along with growth in the market has been development of over five privately financed, owned and operated LPG coastal terminals, in Lagos, Calabar and Port Harcourt, with total storage in excess of 35,000MT, along with LPG ship loading/offloading jetties, LPG cylinder bottling plants, LPG mini plants, LPG road delivery tankers which have particularly seen a growth from less than 100 trucks 12 years ago to over 1,050 as at last count in 2017. “

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