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Tag: Liquefied Petroleum Gas (LPG)

  • NIPCO to extend gas facility to 25 off-takers

    NIPCO Plc, one of the distributors of Liquefied Petroleum Gas (LPG),  plans to extend its 10,000metric tons (mt) production to 25 LPG off-takers approved by the Nigeria LNG Limited for distribution across the country.

    Its Managing Director, Sanjay Teotia, who stated this during the conferment of an award by the Nigeria Association of LPG marketers (NALPGAM), on the company in Akwa Ibom State, said the company’s storage and distribution system have been within the context of the Annual Contract Quantity (ACQ) approved by the Nigeria LNG, which, according to him, has been followed to the advantage of stakeholders.

    Teotia, represented by the company’s Assistant General Manager, Corporate Affairs, Lawal Taofeek, said NLNG has maintained global standards in its dealings with its stakeholders, saying the company has been fair to all in the distribution of the product under the ACQ and to  buyers, pointing out that this has contributed to the growth in the use and utilisation of the clean and smoke-free cooking fuel.

    He said: “The company’s efforts in the sector are aimed at improving the gas value chain by providing avenue for storage and dispense to bottling plants’ owners and other ancillary operators in the LPG market. In the course of NIPCO’s intervention, the transport infrastructure and delivery system were improved upon with scores of LPG delivery trucks to bottling plants and over 60 skids inaugurated by the company across the country.

    “Our plant with a combined capacity of over 10,000mt has not only served as veritable channel for storage of the product alone but also distribution to gas markets plants across the nation and servicing of over 25 LPG off-takers approved by the Nigeria LNG Limited.

    “NIPCO’s storage and distribution system has always been within the context of the Annual Contract Quantity (ACQ) approved by the Nigeria LNG which had been meticulously followed to the delight of all stakeholders.

    NALPGAM National President Nosa Ogieva-Okunbor noted that since the entry of NIPCO into the industry in 2009, the face of the business had changed positively with more avenues to source the product for the benefit of end-users.

  • DPR shuts 17 illegal LPG outlets in Ibadan

    THE Department of Petroleum Resources (DPR) on Monday in Ibadan said it has closed down 17 illegal Liquefied Petroleum Gas (LPG) outlets.

    It also issued warning to nine petrol stations in the second quarter of 2019 in Ibadan.

    The DPR Operations Controller of Ibadan Field Office, Mr. Oluyemi Olaonipekun, while speaking with reporters in Ibadan, said the agency has succeeded in monitoring the operations of Retail Oil Marketers (ROM), Liquefied Petroleum Gas (LPG) retailers and depot operators.

    He said: “The exercise is ongoing  and we will continue to improve as well as carry out the necessary assignments as stipulated by the regulations and oil guidelines.

    “In the other two areas, LPG and filling stations, we have been able to curtail people selling at forecourt below the required volume being paid for by the motorists and other buyers to a greater extent in Oyo State.

    “To this end, we have not been able to close down any filling station due to unnecessary under-dispensing of the pumps.

    “The only area we had closed down filling station is where they have installed skid without our approval.

    Read Also: DPR seals LPG stations in Lagos

    “In the last three months, we have been able to stop illegal installation of LPG skid and closed down 17 illegally installed skid from operating within our area of operations, that is Oyo State.

    “To forestall future occurrence during our routine visit and surveillance, we have gathered data of illegal outfits and their gas suppliers.

    “We believe that if they had not been supplied gas, they will not be able to sell or have the products. We now have the data of the licensed legal operators, who are supplying the illegal operators.

    “We have thereafter written warning letters to nine major LPG plant owners. If they further supply any unlicensed, unapproved LPG site, we will close down their own plants too.

    “The law gives us the power to do that based on the conditions in which they got their licences.

    “They have some responsibilities and duties to perform and if they fail, we have the power to suspend or revoke their licences.”

    According to him, the meeting would seek ways to curb unnecessary supply of products to unlicensed and unapproved sites.

  • Indonesia seeks more crude from Nigeria – Ambassador

    Indonesia seeks more crude from Nigeria – Ambassador

    Indonesian Ambassador to Nigeria, Mr Harry Purwanto, on Wednesday indicated his country’s interest to purchase more crude oil from Nigeria.

    Purwanto declared the South-East Asian country’s interest in Abuja when he paid a courtesy visit to the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr Maikanti Baru.

    In a statement signed by Mr Ndu Ughamadu, Group General Manager, Group Public Affairs Division, Purwanto, said Indonesia looked forward to lifting crude oil directly from Nigeria, rather than through a third-party as is currently the case.

    He said his country’s president Joko Widodo, had instructed Indonesia National Oil Company, Pertamina, to direct its attention to Nigeria in its quest to meet that country’s surging energy needs.

    Purwanto, according to the statement, extended an invitation to the NNPC to grace the Indonesia-Nigeria Business Forum holding in Lagos.

    The statement said a Memorandum of Understanding, on possible areas of co-operation between the two countries was in the works.

    Ughamadu said the call by the ambassador signified the prospects of soaring Nigeria’s market share in Asian emerging economies which include China and India, having lost grounds in crude oil sales in the U. S. due to shale oil exploration.

    He said although Indonesia produced 900,000 barrels of crude oil per day, it supplements its 1.4 million barrels per day consumption with supplies from Nigeria, 18 per cent and Saudi Arabia, 28 per cent.

    In his response Baru said NNPC was interested in working with Indonesia on its initiative to replace firewood and kerosene with Liquefied Petroleum Gas (LPG) as primary domestic fuel for cooking.

    He acknowledged that the corporation was aware of the huge success of the kerosene substitution programme in Indonesia and would like a collaboration to help Nigeria achieve a similar feat.

    Baru added that the NNPC would like to partner with Indonesia in the area of bio-fuels production to diversify the nation’s energy mix and meet its energy needs.

    He challenged Indonesia to consider participating in an upcoming bid round in order to realize its aspiration of maintaining a presence in the Nigerian oil and gas sector.

  • Domestic gas to increase to 3m tons per year-NLNG

    Domestic gas to increase to 3m tons per year-NLNG

    The Nigeria Liquefied Natural Gas (NLNG), has said that it will increase the use of Liquefied Petroleum Gas (LPG) or cooking gas to three million tonnes annually in five years.

    The Managing Director,Mr Tony Attah, disclosed this to newsmen during the Domestic LPG Implementation Stakeholders Workshop in Abuja with the theme “”Unlocking the Opportunities in Domestic LPG Value Chain’’.

    According to him domestic gas consumption in the country was low but said the situation would be changed in line with international operations.

    “”Before our interventions as NLNG, this country was consuming about 50,000 metric tonnes of gas per year but today we are at 400,000 tonnes.

    “”We have done a research working with our consultant; we believe that we can move up to more than three million metric tonnes per year within the next five years and you take it from there.

    “”The future we see is a vision that there is cooking gas in every home in Nigeria, helping to move the country forward and diversifying the economy,’’ he said.

    The NLNG boss dispelled the fears that use of domestic gas was risky, noting that the company would scale up awareness on proper handling of the product.

    He said there was the commercial risk but that the one that concerned the consumer was the safety risk, noting that government was in a position to initiate policies, fiscal positions and terms to mitigate the risks.

    Attah noted that the private sector could partner the public sector towards the use of domestic gas everywhere in the country.

    “”By far the biggest risk that most potential consumers would worry about is the safety risk, but I can say quite clearly that most of the safety risk will be tied to awareness.

    “”A huge campaign will follow this workshop to help Nigerians understand how to use LPG,’’ he said.

    Attah said NLNG was interested in unlocking the potential of gas utilization in the country, adding that the country had over 186 trillion cubic feet of gas reserves with scope for another 600 trillion standard cubic feet.

    “”We are a country that has so much gas and has started to do something with it which is why we at NLNG exist, but we believe that we can do much more.

    “”That is why we are contributing to opening up the LPG space and helping the country move forward on this platform,’’ he said.

    Also, Mr Gbite Adeniji, the Senior Technical Adviser to the Minister of State for Petroleum Resources, said the workshop would be of immense benefit to the country.

    “”We are at a point now in the nation’s economy where we need to start getting LPG penetration into the wider society and into the wider economy.

    “”So this workshop will basically discuss where the government is, policy-wise, and also work with the private sector to bring out an implementation programme around the policy objectives of government for LPG penetration.’’

    He said that the government was keen on a very quick rollout of LPG in order to improve the per capita income of the citizens.

    According to him, the workshop will come up with measurable and actionable plans for rollout of LPG.

    Adeniji also said that “LPG is actually safer than all other forms of fuels; adding that it is healthier, cheaper and more available than any other fuel.

    “”If we are able to wipe out biomass, firewood and all other forms of fuels like kerosene and use LPG it will be of immense benefit to everybody at home.’’

    He said gas meant so much for people as it could be used for cooking, transportation and other industrial applications.

     

  • ‘LPG use ‘ll save govt $1b yearly kerosene subsidy’

    ‘LPG use ‘ll save govt $1b yearly kerosene subsidy’

    The Federal Government could save $1billion yearly in subsidy spent on cooking fuel, dual purpose kerosene (DPK) or kerosene if it introduces and implements a policy that is strong enough to encourage more Nigerians to use Liquefied Petroleum Gas (LPG), Kano State Governor, Alhaji Abdullahi Umar Ganduje and the President, Nigerian Liquefied Petroleum Gas Association (NLPGA), Mr Dayo Adesina, have said.

    Speaking at the LPG conference in Lagos at the weekend, they said the government could also encourage state governments to adopt an LPG policy to protect the health of their people, and enact laws that would stop deforestation and its cutting  of trees for cooking.

    The event had as theme: LPG: The future is now.

    They argued that LPG remains the cleanest cooking fuel with little or no impact on the environment.

    Ganduje, who was represented by the Secretary to the State Government, Rabiu Sulaimon, urged the Federal Government to come out with a policy the would encourage the use of LPG.

    He said by so doing, the government would stop paying subsidy on kerosene, as well as helping to reduce carbon emission and other dangerous chemicals that were caused by the use of fossil fuels.

    He said Kano government has collaborated with the Federal Ministry of Environment in the area of reducing greenhouse emission, among other initiatives that are threatening the peace of the environment.

    According to him, improvement in the use of LPG in the state was made possible by the state government, adding the government was working hard to further reduce cutting of woods for cooking.

    He said: “We have a two-way approach to the issue of helping the Federal Government save $1 billion spent on kerosene subsidy every year. First, the state is working hard to see that more people use LPG for domestic and industrial purpose. Secondly, we are opposing desertification or deforestation.

    “Once policies are in place to support these initiatives, the patronage of kerosene would reduce and implicitly, the government would not see the need to keep on paying subsidy on the product.’”