Energy

December 23, 2014

Accessibility, affordability, hindrances to LPG market devt

By Michael Eboh

Nigerian Liquefied Natural Gas, (LNG) Limited has highlighted accessibility, affordability and acceptability as the major barriers to the development of the Liquefied Petroleum Gas (LPG) market in Nigeria.

Speaking at the fourth annual conference of the Nigerian Liquefied Petroleum Gas Association, NLPGA, in Abuja, Mr. Babs Omotowa, Managing Director, Nigeria LNG, emphasised the need for the deepening and development of the country’s LPG market to reflect the improvement recorded in the sector over the years.

Omotowa, who was represented by Mr. Abdulkadir Ahmed, Marketing and Development Manager, Nigeria LNG, disclosed that in response to supply shortages in the domestic LPG market, NLNG intervened in 2007 and commenced with an annual volume commitment of 150,000 metric tonnes (MT) which was subsequently increased in 2013 to 250,000mt.

He further stated that the NLNG supplies 80 per cent of total domestic consumption, adding that since 2007, total supply to the domestic market is 615,000mt.

He explained that the NLNG is advocating a five-point agenda to grow the industry, which includes: creating awareness, granting incentives to LPG stakeholders, empowering consumers, improving infrastructure and promoting favourable government regulation.

Also speaking, Prince Haruna Momoh, Managing Director, Pipelines and Products Marketing Company, PPMC, and Chairman, Gas to Health Initiative, emphasised the need for access to LPG for the generality of the people.

Momoh, who was represented by Mrs. Betty Ugona, Manager, LPG, PPMC, said the Gas to Health Initiative has been promoting access to LPG by distributing free cylinders to the rural communities, promoting the safe use of LPG and general outreach programmes.

Speaking in the same vein, Mr. Dayo Adeshina, President of the NLPGA, lamented the inadequate gas infrastructure in the country, lack of access to funding, safety and regulatory challenges.

He called for a joint initiative by both the private sector and the government, to identify ways in which investment in the LPG sector can be easily promoted.

Mr. Ian Brown, Managing Director, Navgas Limited, lamented the issue of substandard trucks not fitted with adequate safety equipment, stating that there is a dire need for the issue of safety to be recognised and addressed.

Speaking further, Miss Damilola Ani, Executive Secretary, NLPGA, said the launch of the Women in LPG Council is scheduled to take place in the first quarter of 2015.

She explained that the council would provide positive opportunities for all members in the LPG industry to support the advancement and success of women in every scope of business operation and professional development.