January 12, 2020

Affordability, accessibility, acceptability, essential for LPG penetration

By Udeme Akpan

THE Nigeria Liquefied Petroleum Gas Association (NLPGA) has harped on affordability, accessibility, acceptability and availability of Liquefied Petroleum Gas, LPG, as major ingredients to driving LPG penetration in Nigeria.

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The President of NLPGA, Mr. Nuhu Yakubu, stated this when he led a team of the NLPGA officials to visit the Minister of State for Petroleum Resources, Chief Timipre Sylva, in Abuja.

He expounded several solutions-focused strategies that could be effectively implemented to demonstrate Federal Government’s deep commitment in developing the sector.

Nuhu, who stated that the association aims at promoting and protecting the LPG sector, encouraging the highest standard of professionalism and sound ethics, empowering all stakeholders through information, education and networking, as well as advocacy to enhance LPG production, distribution and consumption, added, “LPG accessibility starts with cylinder distribution.”

He further called on the Minister of State to support NLPGA in its quest to enhance the penetration of LPG as a domestic fuel in Nigeria.

In his response, Sylva declared 2020 as the year of gas for the nation, adding that the government was determined to complete the Nigerian Gas Flare Commercialisation Programme.

Sylva who commended the NLPGA for its recent Annual LPG Conference and Exhibition, noted the importance of safety and applauded NLPGA’s launch of the LPG safety check list, aimed at enthroning self-regulation on safe practices across the entire LPG value chain.

The Minister further stated that plans were underway to mop up old and obsolete gas cylinders in circulation and replace them with brand new ones while noting the ability of Techno Oil, a member of NLPGA, to produce cylinders in Nigeria.

This has also granted the company the ‘pioneer status’ which exempts it from paying tax on import of all raw materials for LPG cylinder production and will help to reduce the cost of production.

He expounded several solution-focused strategies that when effectively implemented will not only demonstrate FG’s deep commitment in solidifying the sector but also ensure that LPG utilization becomes the norm.

The Technical Adviser on Gas Business and Policy Implementation to the Minister of State for Petroleum Resources, Mr. Justice Derefaka, noted that the high annual flare volumes of over two million tonnes of LPG was high and called for reduction.

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The NLPGA delegation comprised of the President, Nuhu Yakubu; Executive Secretary, Olakunle Oyebanjo; Kenneth O. Abazie (General Manager, Commercial, Techno Oil); Geoffrey Gideon (Northern Regional Manager, Banner Energy Limited) and Daniel Isiocha (AGM, Government Relations, Techno Oil).