…NNPCL to deploy 740 LGP Micro-Distribution Centre in next three years
By Gloria Akudoro, Abuja.
The Group Chief Executive Officer, Nigerian National Petroleum Company Limited, Mallam Mele Kyari has said the company is working with the office of Vice President to establish Gas Finding Company Limited which will inject 20 million cylinders in next 5years under the Market Cylinder Owned Model.
In his key note address on the theme, “Energizing the Future: Leveraging the Indian Experience to Achieve Nigerian National LPG Aspiration” during WLPGA India-Nigeria LPG Summit 2022 in Abuja, he said NNPC Limited is positioned to deploy 740 LPG Micro-Distribution Centers (MDCS), 37 Filling Plants and skids in its 541 Stations within the next three years.
The GCEO emphasized that the summit is expected to discuss the Nigerian experience and Indian example covering safe Liquefied Petroleum Gas (LPG) handling, pricing & financial support to enhance LPG affordability among the poor, communication strategies and infrastructure and collaboration on cylinder management and manufacturing.
“At the end of the discussions, the Summit will be required to submit a report detailing gaps identified and recommendations on best practices from the Indian experience for adoption in Nigeria by relevant stakeholders to achieve rapid National LPG penetration,” he hinted.
As the Chief Host with support coming from the office of the Vice President as well as World Liquefied Petroleum Gas Association (WLPGA), Kyari expressed optimism that the summit will translate into fruitful bilateral exchanges that would foster mutual collaboration and provide opportunities for the Nigerian LPG industry to learn from India’s experience as one of world’s most successful National LPG penetration initiatives.
According to him, “Nigeria has identified its abundant gas resources as fuel for an energy transition which informed her Net Zero commitments by 2060 and the declaration of 2021- 2030 as the Decade of Gas.
“NNPC Limited is an energy company with new investments in gas, power, and renewables. Key pipeline projects such as ELPS I1, OB3 and AKK to deliver a total of 6.2 billion cubic feet of gas per day to demand nodes across the country are at various stages of completion.
“With a strong presence in the LPG value chain contributing about 45 per cent of Domestic supply via JVS (Oso Bonny River Terminal), affiliates (Nigeria LNG Ltd & Ashtavinayak Hydrocarbon Limited) and subsidiaries (NPDC).”
Kyari however further stressed that NNPC Limited is fully aligned with the Federal Government of Nigeria’s National Gas Expansion Programme (NGEP) and National LPG Expansion Plan initiatives and has a full-fledged LPC business Unit established to commercially drive the National LPG penetration.
Meanwhile, Special Adviser to the President on Economic Matters, Office of the Vice President, Ambassador Adeyemi Dipeolu also expressed optimism that Nigeria will learn from India’s experiences with the Pradhan Mantri Ujjwala Yojana (PUMY) implemented by the India Government in 2016 which increased LPG penetration in that country from about 62 per cent in that year to nearly 100 per cent today.
He said the theme underscores the need for cooperation and collaboration between the two countries and policies structure, health, safety and environmental methods, ICT and infrastructure, management techniques, stakeholder engagement as well as innovative program to incentivised the LPG market growth here in Nigeria.
According to him, Nigeria remains the largest mined natural gas reserve in the world and is the second largest producer of LPG in Africa after Algeria. It currently produces about five million tons of LPG annually.
“However, only 8 per cent of this production is utilized domestically with the bulk being exported. Domestic LPG production stands at about 45 per cent of annual consumption with Nigeria energy limited supplying 450,000 metric tons per annual where 55 per cent is imported into the country. LPG adoption in the Nigerian market is still very low with per capita consumption at about 1.8kg which is below the West African average.
“The household energy meets in Nigeria is about five per cent LPG, 65 per cent biomass and 30 per cent kerosene. The preference for the use of other sources is largely due to high switching courses associated with the acquisition of cylinders and LPG stoves, lack of awareness and associated benefits and safe LPG handling across consumer bases. Also the high cost of LPG in comparison with the alternative fuels, insufficient and inappropriate cylinders in circulations and inadequate infrastructure, especially trucks, roads, rail, pipelines and bottling plants.
“The predominant use of biomass for household cooking results in deforestation and handmade air pollution also leads to death due to stroke, heart disease, lung cancer and chronic respiratory diseases.
“These underscore the imperative for policies incentives and investment to grow the Nigeria LPG market. To make cleaner fuel available, accessible and affordable not only for household cooking but also in autogas, active power generation, heating and cooling as well as agriculture and industry,” said Dipeolu.
In his remark, the Chief Advocacy Officer, WLPGA, Michael Kelly, said the essence of today’s summit is to grasp lessons learned from India and incorporate it onto Nigerian context taking into cognisance cultural and other textural differences.
“Part of what we do is to look around the world and see initiatives and programmes that can work in one country and see if it can work in another country. So, we take what works in India and put in Nigeria,” he explained.
Kelly added that the WLPGA which has its headquarters in Paris rand members all over the world, represents the entire value chain of production and distribution of LPG. As a result has a global perspective on the market and is confidence that Nigeria is poised with a very significant growth.
Also speaking, Company Group Manager, LPG Sales, S. Lakshminarayanan, who commended NNPC Limited for its for supporting the summit, expressed certainty that the summit will leverage the industry’s experience to realize Nigerian national LPG aspirations and strengthen India-Nigeria bilateral ties.
The hybrid event is graced with personalities from the office of the Vice President, Indian Oil Corporations, WLPGA partners, senior officials from the NNPC Limited and other key players of the Industry.