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Tag: LPG

  • Nigeria launches 40,000 cbm LPG vessel to boost clean energy

    Nigeria launches 40,000 cbm LPG vessel to boost clean energy

    President Bola Tinubu yesterday said Nigeria is poised to deliver clean and sustainable energy solutions not just in-country but also across Africa and beyond.

    He spoke at the commissioning ceremony of a 40,000 cubic meters (CBM) Liquefied Petroleum Gas (LPG) vessel, christened MT Iyaloja (Lagos), in Ulsan, South Korea, according to a statement issued by the Nigerian National Petroleum Company Limited (NNPCL).

    According to the oil company, the vessel owned by WAGL Energy Limited (an NNPC Ltd. /Sahara Group Joint Venture) is a dual-fuel, fully refrigerated LPG carrier. This latest addition brings WAGL’s total LPG vessel capacity to 162,000 CBM. Other vessels in the fleet include MT Africa Gas, MT Sahara Gas, MT BaruMK, and MT Sapet.

    Represented by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, Tinubu commended WAGL Energy Limited, NNPC Limited and Sahara Group, for their strategic foresight, technical excellence and unwavering dedication to expanding Africas role in the global clean energy value-chain.

    Read Also: Heirs Energies strengthens Africa’s Energy Voice, says Igiehon

    In his remarks, Group Chief Executive Officer (GCEO) of NNPC Ltd., Engr. Bashir Bayo Ojulari, described WAGLs LPG Vessel as a great addition to gas development efforts in Nigeria.

    The GCEO, who was represented by the Executive Vice President, Gas, Power & New Energy, Mr. Olalekan Ogunleye, added that the vessel will be crucial in realising the impact of gas in Nigerias economic development.

    According to him, NNPC Ltd. is deepening its commitment to ensure LPG affordability, availability and access, nationwide.

    NNPC Ltd. is proud to be a major shareholder in this indigenous Company which in addition to the newly commissioned MT Iyaloja (Lagos), owns four other LPG vessels in its growing fleet, delivering over 6 million MT of LPG across West Africa over the last five years, he added.

    Also speaking, WAGLs Chairman/Executive Director at Sahara Group, Mr. Temitope Shonubi, noted that the company’s expansion demonstrates its vision of responsibly driving efforts aimed at bridging the continent’s critical energy infrastructure gap.

    “The addition of MT Iyaloja (Lagos) embodies the spirit of progress and empowerment championed by the iconic Alhaja Abibatu Mogaji, whose legacy we honour. Sahara Group is proud of its partnership with NNPC Ltd. and reaffirms its commitment to partnerships that drive energy access in Africa,” he added.

    WAGL’s Managing Director, Mr. Mohammed Sani Bello said the company is dedicated to expanding its integrated supply network across the entire energy value chain.

    “WAGL already has plans to further expand the fleet within the next two years with the addition of a Small Gas Carrier and a Very Large Gas Carrier (VLGC),” he said.

    The symbolic ribbon cutting of MT Iyaloja (Lagos) named in honour of Alhaja Abibatu Mogaji, (the late mother of President Bola Ahmed Tinubu), was performed by her grand-daughter, the Iyaloja-General of Nigeria, Alhaja Folasade Mujidat Tinubu-Ojo.

  • ‘Fed Govt subsidising electricity with N200b monthly’

    ‘Fed Govt subsidising electricity with N200b monthly’

    The Federal Government is subsidising electricity supply by N200 billion monthly, Special Adviser to the President on Energy, Mrs. Olu Verheijen, said yesterday.

    She spoke as the government explores ways to improve supply and ensure the subsidies are delivered to the most vulnerable households.

    The special adviser dismissed insinuations in some quarters that the government was considering a 65 per cent increase in electricity tariffs.

    Mrs. Verheijen clarified that even with the increase in tariffs for Band A electricity consumers last year, the government still provides about 35 per cent electricity subsidy, equivalent to N200 billion monthly.

    She said in a statement: “It is a misrepresentation of what I actually said in a recent press interview. I highlighted the fact that, following the increase in Band A tariffs in 2024, current tariffs now cover approximately 65 per cent of the actual cost of supplying electricity, with the Federal Government continuing to subsidise the difference.”

    The special adviser bemoaned the situation where much of the N200 billion subsidy “benefits the wealthiest 25 per cent of Nigerians rather than those who truly need assistance”.

    She said the government was implementing a multi-faceted programme to ensure effective pricing and metering of electricity, reduce general cost of electricity supply and ensure that the most vulnerable segment of the society have access to electricity supply.

    According to her, while the government is committed to ensuring fairer pricing over the long term, the immediate focus is on taking decisive actions to deliver more electricity to Nigerians, ensure fewer outages, and guarantee the protection of the poorest and most vulnerable Nigerians.

    Verheijen outlined government’s power sector priorities to include mass rollout of prepaid meters, targeted subsidy regime that focuses on the most vulnerable, settlement of legacy debt and reduction in costs for alternative power generation.

    She stressed: “The government fully understands the economic realities facing citizens and is committed to ensuring that reforms in the power sector lead to tangible improvements in people’s daily lives.

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    “Every policy is designed with the Nigerian people in mind-eliminating unfair estimated billing, ensuring that subsidies benefit the right people, and creating the conditions for stable, affordable electricity.

    “These reforms are laying the foundation for better service delivery, expanded access to electricity for homes and businesses, and unlocking prosperity for all Nigerians.”

    Verheijen explained that under the Presidential Metering Initiative (PMI), the government plans to accelerate nationwide rollout of seven million prepaid meters, starting this year.

    Mrs. Verheijen noted that the mass rollout of prepaid meters would “finally put an end to the practice of estimated billing, giving consumers confidence in what they are paying for and ensuring transparency in electricity charges”.

    She added that metering would also improve revenue collection across the sector and thus attract the investments needed to strengthen Nigeria’s power infrastructure.

    According to her, a new subsidy regime template is underway to ensure that electricity subsidies get more to the most vulnerable in the society.

    She said: “To address this, the Federal Government is working towards a targeted subsidy system to ensure that low-income households receive the most support. This approach will make electricity more affordable and accessible for millions of hardworking families.”

    The special adviser pointed out that the settlement of legacy power debt is a top priority for the government as mounting debts owed to power generation companies have been part of the major roadblocks to improved service in the sector.

    Verheijen added: “For years, these debts have prevented investments in new infrastructure and hampered efforts to improve electricity supply. By clearing these outstanding obligations, the government is ensuring that power companies can reinvest in better service delivery, stronger infrastructure, and a more stable electricity supply for all Nigerians.”

    She said through a range of fiscal incentives, including the Value Added Tax (VAT) and Customs Duty waivers, the government is working to lower the cost of alternative power sources such as Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).

    Mrs. Verheijen emphasised that these priorities reflect the President Bola Ahmed Tinubu administration’s recognition of the economic realities facing Nigerians and its commitment to ensuring that power sector reforms deliver tangible benefits to citizens.

  • More jobs coming as firm plans LPG depot

    More jobs coming as firm plans LPG depot

    Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, has said 100,000 jobs will be created once NesGas 50,000 Metric Tonnes (MT) Liquefied Petroleum Gas (LPG) depot comes on stream.

      He said the depot will bridge the energy demand, reduce hazards associated with dirty fuels, generate employment and boost the economy.

     Ekpo spoke yesterday during the groundbreaking at Oil and Gas Free Trade Zone, Onne, Rivers State.

    The minister noted Nesgas’s investment will unlock gas potential to aid cleaner, more sustainable energy sources and diversify the economy.

     He said ‘’the private sector’s investment in infrastructure to facilitate storage, delivery, and consumption of clean energy is demonstrated by NesGas’s 50,000 metric tons LPG and propane depot.

    ‘’The depot promises to provide over 100,000 jobs, from construction to operation, promoting skill development and economic inclusion.”

    Ekpo assured investors in gas that the Federal Government would  ‘’establish laws on transparency, seek more funding, and provide a level-playing field.”

    Read Also: I’ll take on your concerns one by one, Tinubu assures South-south indigenes

     He restated President Bola Tinubu’s resolve to support expansion of the industry.

     “As minister of state for Petroleum Resources – Gas, I support growth of the gas industry. Nigeria is endowed with natural gas resources, and we will harness this potential to drive Nigeria’s socio-economic development,” he said.

     Managing Director of Nesgas, Tunde Banjo, said the mission was to end energy poverty in Africa through strategic investment in gas development initiatives and assets.

     “As we embark on the groundbreaking, we are on a journey towards a brighter and more sustainable energy future for Africa,” he said.

    The event also witnessed the signing of partnership and collaboration deals with Nesgas and Gas360, Modern West Advisory and Hebron Gas Infrastructure Limited.

  • ‘Customs yet to implement tax waiver on LPG’

    ‘Customs yet to implement tax waiver on LPG’

    Liquefied Petroleum Gas (LPG) Stakeholders have lamented the non implementation of tax waiver on import of cooking gas as directed by President Bola Ahmed Tinubu over a week ago. 

    They said Tinubu had ordered an exemption of Value Added Tax (VAT) on LPG imports so as to crash the soaring prices of cooking gas in the country.

    Stakeholders in the industry are therefore asking the Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi to comply with the Presidential directive. 

    Other items exempted from VAT and duty payment are LPG cylinders, cascades, gas leak detectors, steel pipes, valves and fittings, dispensers, gas generators and trucks.

    Freight Chairman, Kabir Babawale told reporters yesterday after an emergency meeting of the LPG group.

    Alhaji Babawale said Adeniyi should explain to Nigerians the reasons behind his alleged refusal to comply with the directive of the president.

    He said the LPG storage tanks of many of his members under the code of 73111.00.00.00,  are lying helpless at the ports with increasing demurrage on daily basis,  wondering whether Customs Service will pay for the demurrage now that it has refused to obey the directive of the President.

    “We are anxiously awaiting the implementation of this directive,” he said.

    Babawale, while thanking the Presidency for its proactive decision on the exemption order believed that the development would boost the Gas Economic Policy of the government and ease off the excruciating costs of domestic cooking gas in the country.

    He noted, “as investors, we are ready to commit more into the business, but before then, we are anxiously awaiting the implementation of this directive. Or Can we begin to insinuate that there is a parallel body to the Federal Government in Nigeria?”

    Recall that in a move aimed at making cooking gas more affordable for Nigerians, the Federal Government had few days ago announced the exemption of the LPG imports from VAT and customs duty.

    Read Also: Why FG should extend tax waivers probe to tobacco firms, by CAPPA

    This decision, communicated through a letter from the Ministry of Finance, is expected to significantly reduce the cost of cooking gas for households and businesses across the country.

    The Federal Government had decided to waive customs duty and VAT on importing the commodity and its accessories to crash the price of the LPG nationwide.

    The report said the Ministry of Finance conveyed the decision in a letter dated November 28, 2023, and addressed to several officials, including the Special Adviser to the President on Energy, the Comptroller General of Customs, and the Chairman of the Federal Inland Revenue Service (FIRS). The Minister of Finance, Wale Edun, signed the letter.

    The letter partly reads: “In line with His Excellency, President Bola Tinubu’s commitment to improving the investment climate in Nigeria, increasing the supply of LPG to meet local demand, reducing market prices, and promoting clean cooking practices, I hereby affirm Presidential directive dated July 29, 2022, with reference number PRES/88/MPR/99,” the letter reads.

    The letter also directed Nigeria Customs to comply with the presidential directive of July 29, 2023, and withdraw all debit notes issued to oil marketers who have imported the product, using codes 2711.1.200.00 and * 2722.13.00.00 from August 26, 2019, to the present.

  • Firm secures N19.41b to build 10,000MT LPG storage facility, jetty

    Firm secures N19.41b to build 10,000MT LPG storage facility, jetty

    An energy solutions company, Falcon Corporation Limited, has secured a N19.41 billion facility from the Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF).

    Proceeds of the loan are earmarked for the development of a state-of-the-art 15,000 metric ton Liquefied Petroleum Gas (LPG) storage facility and a dedicated jetty in Port Harcourt, the Rivers State capital.

    The project, which has reached an advanced stage, is being carried out in two phases.

    The first phase is the construction of 10,000 metric ton spherical tanks, a dedicated jetty and other associated infrastructure.

    That will be followed by the development of an additional 5,000 metric tons of storage at a later date.

    Managing Director, Prof. Joe Ezigbo, said: “At Falcon, we consider our investments in the gas industry as a national service first.

    “This is why over the past almost thirty years, we have continued to expand our footprints within the industry, despite the various challenges within the environment.

    “Gas development is our contribution to nation-building and we remain unrelenting in this regard.

    “We positioned our LPG facility strategically in proximity to major Gas sources and navigable water routes.

    “The project is set to facilitate and enhance more direct procurement and distribution of LPG, which will dramatically lower conventional delivery and storage costs.

    “Beyond economic gains, we anticipate significant social benefits including job creation, income growth, health improvements, and environmental sustainability as our customers and communities transition to cleaner fuel options on a larger scale.”

    Deputy Managing Director and Co-Founder of Falcon, Mrs Audrey Joe-Ezigbo, said the company was committed to the growth of Nigeria’s domestic gas industry.

    She said: “We are fully aligned with the nation’s aspirations to leverage gas for industrialisation, and our primary energy transition fuel, with the strong focus on its use for power and cooking.

    “LPG’s characteristics, such as portability, high energy value, low emissions, and reduced carbon footprint, make it an ideal choice for cooking and other industrial uses.

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    “The project aims to ensure the availability of LPG and deepen its market penetration and adoption within the catchment areas, contributing to the mitigation of ecosystem damage and greenhouse emissions caused by the use of other traditional fuels.”

    Chief Executive Officer of Chapel Hill Denham, Mr. Bolaji Balogun, said the firm was pleased to support the integrated LPG infrastructure in Rivers State.

    “This will not only increase domestic LPG consumption but also help in achieving one of the critical sustainable development goals aimed at reducing carbon emissions, air pollution, and habitat loss resulting from the use of firewood for cooking by more than 30 million households.

    “The project is also in line with the Federal Government of Nigeria’s objective of increasing the adoption of LPG as auto fuel and a replacement of diesel for power generation,” he said.

    Funded by debt obtained from NIDF and the Bank of Industry (BOI), coupled with internally generated funds, the project has hit a number of critical milestones, with a recorded completion rate of 65 per cent as of October 2023.

    Operational since 1994, Falcon is a wholly indigenous integrated player across the energy value chain in Nigeria, with expertise in delivering energy solutions across the midstream and downstream sectors of the industry.

    The company is the licensed local distribution company charged with the infrastructure build-out, distribution and supply of natural gas.

  • Sahara Group okays $1b for LPG

    Sahara Group okays $1b for LPG

    Sahara Group has planned to invest at least $1billion in building the logistics infrastructure of Liquefied Natural (LNG) in the next five years.

    The plan is aimed at attaining 75,000 metric ton capacity for LPG.

    Its Director of Governance and Sustainability, Ejiro Gray, broke the news during the Learning Session organised by Sahara Group for the Energy Correspondents Association of Nigeria, Abuja.

    Asked to state the Group’s exposure to the development of CNG and LPG, she said: “LPG in particular, we’re doing a lot of that.

    “We have a five-year plan to invest at least $1billion in LPG and how are we going to do that? Building the logistics infrastructure.?”

    According to her, the plan is also targeted at investment in vessels as the group is increasing its number of fleet from its current four LPG vessels.

    Gray noted that Sahara Group also has two vessels at the Hyundai Mipo Dockyard in South Korea.

    She said, “So you’re talking about, for instance, vessels. We’re greatly increasing our fleet.

    “Currently, we have four LPG vessels. We have two in the making at the Hyundai Mipo Dockyard in South Korea for LNG vessels as well.

    ” And the reason is we need to be able to boost regional supply in Nigeria and across West Africa. “The plan is within the next few years, we want to build up to this 75,000 metric tonne capacity for LPG.”

    Gray revealed that the Group is building a storage plant in Cote d’Ivoire.

    According to her, the the essence is to boost internal supply to neighbouring landlocked countries around the region.

    “We’re also doing that in Nigeria, also to boost supply,” she added

    The Director of Governance and Sustainability said the Group is yet to invest in CNG.

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    She attributed the group’s reluctance to invest in CNG on lack of infrastructure network in the country.

    She however revealed that investment in CNG is capital intensive since the haulage trucks are powered by diesel.

    Gray said, “So LPG, we’re very big on it. CNG, the reason why we have not yet invested is infrastructure. We don’t have that infrastructure network yet in Nigeria for CNG. “Unless you just want to do trucking and by the time you do the cost is high because the truck will probably move on diesel and all of that, unless you are able to get one that is engineered to move on to CNG.”

    Seeking external support for the development of CNG, she said, “So yes, we want we want to we definitely want to go into CNG but we also need support in building that infrastructure to be able to drive it. We can’t do it alone.?”

    On bridging gas infrastructure gap, she said, the only way to mitigate the situation is access to finance.

    She added that if local and foreign investors have access to financial incentives they can venture into the CNG business.

    Gray said: “Honestly, I cannot pretend that I know the answer to this.”I think it still boils down to access to finance. If investors, and I’m talking about not just foreign but local. If they have access to finance and they have the right incentives to support their investment, they will be more willing to.”

  • LPG marketers accuse terminal operators of sabotage

    LPG marketers accuse terminal operators of sabotage

    Liquified Petroleum Gas (LPG) or cooking marketers yesterday accused terminal operators of sabotage by astronomically increasing the price of the product through hoarding to create artificial scarcity.

    Acting under the aegis of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) and led by their President, Oladapo Olatunbosun, told the Senate Committee on Gas, in Abuja, that the Nigerian Liquified Natural Gas (NLNG) had been consistent with its supply but the terminal operators had disrupted the availability of LPG to Nigerians.

    Olatunbosun fingered RainOil, NAFGas, and Matrix Energy, among others, as the cartel buying the product cheaply from the source and selling at a very high price.

    He said: “The cabals are making it difficult for the average Nigerian to have access to gas. As of today, gas is sold by these terminal owners for N16.8million for 20 metric tonnes whereas NLNG sells to them for a little bit less than N9 million.

    “Some of them are NAVGas, NIPCO Plc, Matrix Energy Limited, Prudent Energy Limited,  Shafa Energy, Techno Gas, StockGap Limited, Mobil, Pan Ocean Limited, NNPC, Ologbo, NSPC Apapa, Shell, and Dozzy LPG terminal.

    “When people go to fill their gas today, the least they get is N1,200 per kg. Imagine the pain of Nigerians. In Nigeria of today, can a student or menial worker afford to cook a cup of beans with a N1,200 cost of gas?”

    He further told the Senate that Nigerians had no reason to buy gas for such a high price.

     “Even countries like Cote d’Ivoire, Ghana and the rest are no match for Nigeria in terms of gas production, but the prices of gas are cheaper in those countries than here where we are the second largest producer of the gas production in Africa after Algeria, yet our people cannot afford to cook with gas.

    “We produce gas more than we import, in fact, the proportion imported is so insignificant, but these cabals have refused to allow Nigerians to enjoy the dividends of this production and the efforts put in by the government,” he said.

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    He further alleged that the terminal operators usually refer to foreign exchange as one of the reasons for the increase in the prices of gas whereas the transactions were done purely in Naira.

    “These cabals have also made the practice of hiding behind forex but the question is:  Does NLNG get paid in dollars? The answer is No.

    “All the transactions are completed in naira. What is the role of forex in this situation? Where is the important evidence?

    “You buy gas for N9 million from NLNG and pay in naira, then you sell the same gas for N16 million and blackmail the government.

    “When people get to our plants and we tell them the price, they start weeping and cursing the government whereas, the government has done their best to make life bearable to the people.”

    The marketers further insisted that if adequate measures were not taken to adequately address the identified issues, by December 2023, 12,5kg of gas would sell for N25,000

    “If we don’t rise up and checkmate the whole thing, the gas would become a luxurious product available to only the rich.

    “By December, these cabals might start to sell 20 metric tonnes for N200 million. This would mean that gas will sell for 2,000 per kg and N25,000 for 12.5kg,” he added.

    The marketers further lamented that the utilization level in Nigeria was quite low due to poverty and other factors.

    He said, “We are operating 1.2million metric tonnes per annum but if we look at our population, we ought to be operating around six to seven million metric tonnes per annum but due to availability and affordability; we can’t operate at that level yet.

    “And when gas prices went up, the level of consumption dropped, at the moment, the level of usage is between 750,000 to 900,000 metric tons per annum.

    “And our forest will suffer for it. People will go into the forest to get wood and charcoal to cook.”

    “This is the kind of hardship that the few cabals have subjected poor Nigerians to which is worrisome particularly because it would continue to sell the wrong perception of this administration to Nigerians as not doing anything for the public.

    “The problem is that there is no regulation, NLNG are aware of all these but they have refused to interfere in the issue.

    “It seems like the voiceless have no one to defend them, hence the reason why we have come to the Senate to cry out for help for the poor Nigerians.”

    He also explained that there must be room for profit making for investment that will not jeopardize the interest of the people, but will aid deepening the usage of gas.

    “They are investors, and we are not against them making profits because they put in their resources but what is not allowed in any part of the world is making super profit.

    “These cabals don’t want the industry to grow, because if it grows, more investors will go into the business and they will see that there is a gap.

    “So, they want utilization level to drop, so investors will not come in and they will be able to dominate and monopolise the industry,” he stated.

    The Chairman Senate Committee on Gas Senator Jarigbe  Agom Jarigbe, assured the marketers that the Senate would not let the issue be swept under the carpet.

    He noted that the issue was a very important national issue that required urgent attention.

    “I have listened to you on behalf of the committee and the Senate. You know that this administration has talked about improving gas supply, LPG, and there is a new revolution in terms of Compressed Natural Gas for vehicles to cushion the effect of the subsidy removal.

    “As it concerns your complaints that NLNG sells to the terminal owners for about 10million for 20 metric tonnes and they sell to you the markets with about N7million margin; which would have a negative multiplier effect in the value chain to the final consumer.

    “This is what the Senate will not agree with. And I know the executive will not agree with it either because that is not the intention of Mr President.

    “I want to thank you for your courage because it would have been possible for you to compromise at this stage but you decided to speak up for the common man.

    “I would do more than what you have done. When the Senate President on a lighter note said “Nigerians have to breathe”, it doesn’t mean for the very poor, it’s for Nigerians.

    “We must allow ourselves to breathe. There is nobody that is not using gas today except those in the interior villages.

    “With the issue of Climate Change and GreenHouse Gas emissions, we will do our best as a Senate to support you and support Nigerians because we were voted to represent our people and it is our job to protect them. We promise to match words with action,” Jarigbe said.

  • Nigeria to consume 2m metric tonnes LPG by 2025

    To improve domestic consumption of gas, Nigeria will consume two million metric tons of Liquefied Petroleum Gas (LPG) by 2025, Matric Energy Limited’s Chief Marketing Manager, Mrs. Toyin Sowumi, has said.

    She said the development became imperative to enable Nigeria equal other countries, where LPG’s use is recognised as a healthy source of cooking.

    According to her, LPG production would be boosted in the country when consumption increases from 600 metric tonnes per annum to 2,000 metric annually.

    Speaking during a programme titled: ‘Meet Your Customers’ Forum’ in Warri, Delta State, she said Matrix Energy supplies 30 per cent of LPG distribution in the country, adding that the firm has deployed 65 LPG trucks to deliver to customers in various parts of the country.

    Sowunmi said: ‘’To achieve the target of taking the LPG consumption rate in Nigeria from about 600 metric tons per annum to around 2 million by 2025, the company has deployed 65 LPG trucks to deliver to its customers in different parts of the country and planning to procure more for easy distribution of product, about 30 per cent supplies of LPG distribution across Nigeria with an intent for an increase.’’

    According to her, the forum was meant to deepen the interest of many people in the product, adding that the firm is supporting the on-going climate change campaign in Nigeria and beyond.

    She said the issue of reduction in greenhouse emission is key to the growth of the people, adding that the firm will not relent in its efforts to make the campaign a success in Nigeria.

    The Nigerian Bureau of Statistics (NBS), he said, affirmed that LPG is the cleanest source of energy, stressing that it is a good development for the country where 66 per cent of its population uses firewood and has the tendency to change to LPG.

    Similarly, Matrix Energy’s Terminal Manager, Mr Raphael Biu, said Matrix Energy is working to ensure the needs of the people are met, adding that the firm is committed to the growth of LPG usage in the country.

    He said LPG consumption in Nigeria is 600 metric tonnes ( about 2 kilogramme per capital), compared to Ghana (4.3 kilogramme) and Sierra Leone  (9 kilogramme) per capital, stressing that the Federal Government is working to ensure that Nigerians consume 2 million metric tonnes of LPG by 2025.

    Also, the Nigerian Association of LPG Marketers (NALGAM) president, Ogieva Nosakhare Okunbo, has urged the government to provide a friendly environment for LPG production, adding that the development would help boost consumption.

    He also urged the government to devote the subsidy on the importation of kerosene to producing more cylinders, noting that if the government is committed to injecting five million cylinders, yearly into the system for five years, gas will become the most commonly used source of energy in Nigeria.

    “Another way forward is for the Federal Government to redirect the subsidy dedicated to kerosene now to the production of cylinders. If we inject five million cylinders each year for five years to the system, gas will become the most commonly used source of energy; for cooking, power automobile, power some other things. Statistics have shown that nothing less than 5,500 persons die daily globally from the use of solid fuel. That is indoor pollution from the use of dirty fuel for cooking,” he said.

  • Fed Govt mulls VAT removal on locally produced LPG

    The Federal Government is working with relevant agencies to remove the controversial value added tax (VAT) from locally produced liquefied petroleum gas (LPG), commonly called cooking gas,  The Nation learnt at the weekend.

    There has been effort from operators in the LPG subsector of the oil and gas industry to persuade the government to remove VAT from locally produced LPG. This is because  imported LPG doesn’t attract VAT making it cheaper than its local counterpart.

    The Federal Government has given assurance to resolve the VAT issue. The Executive Director, Commercials, Products and Pipeline Marketing Company (PPMC), an arm of the Nigerian National Petroleum Corporation (NNPC), Sir Billy Okoye, who spoke on the sideline of the annual general meeting (AGM) of Nigerian Association of LPG Marketers (NALPGAM) in Lagos, said: “A lot of work is being done to address the issue of VAT on locally produced LPG as against imported ones. The Federal Inland Revenue Service (FIRS), NNPC, NLNG, Nigeria Liquefied Petroleum Gas Association (NLPGA) and NALPGAM are working together and very soon, official announcement will be made on VAT removal.

    “The NNPC is supportive of the initiative of NALPGAM in deepening LPG consumption by distributing free gas cylinders to very low income earners and in rural areas.

    “The Corporation wants LPG consumption to get to all the nooks and crannies of the country. The refineries are producing LPG today and our intention is ensure that enough LPG is supplied to the country. Thanks to NLNG for what it is doing.

    “NLNG in collaboration with the NNPC is supplying a lot of LPG to the country and we intend to continue doing that. .”

    President of NALPGAM, Nosa Ogieva-Okunbor, said removal of VAT on locally produced LPG will make the commodity cheaper and boost the consumption of cooking gas in Nigeria. He said NALPGAM distributed about 500 cylinders free of charge at Sheraton Lagos inaugural free cylinder initiative and plans to do more.

    He said: “It is imperative to develop effective policies to encourage investors to come into the LPG subsector to deepen market penetration, boost the country’s economy and protect the environment.”

    He commended  the  government for setting up a committee to look at the issue of  VAT  on  locally produced  LPG  which  he said has  made  the product out of the reach of many consumers.

    The LPG produced in the country and supplied to local market for internal consumption is done by the Nigeria Liquefied Natural Gas Limited (NLNG). Unfortunately, at the establishment of the NLNG, the supply of LPG to the local market was not in the plan. The entire LNG and LPG produced by the company was meant for export.

  • NLNG, others sign pact on new vessel to boost LPG supply

    Nigeria Liquefied Natural Gas Limited (NLNG), and E. A. Temile and Sons Company Limited, have  sealed an agreement for the construction of a new liquefied petroleum gas (LPG) vessel to boost supply to domestic market. E. A. Temile and Sons Company is a wholly Nigerian company, under a contract with Hyundai Mipo Dockyard, South Korea.

    According to NLNG, the new LPG vessel will boost volume and availability of cooking gas as well as consolidate the company’s contributions to deepen the domestic LPG industry and increase consumption of the clean gas. The new LPG vessel will be built  under a contract with Hyundai Mipo Dockyard, South Korea and chartered to NLNG.

    At a contract signing ceremony between E.A Temile and Sons Limited and Hyundai Mipo Dockyard in London, NLNG Managing Director and Chief Executive Officer, Tony Attah, remarked that the signing ceremony was ground-breaking for NLNG because it supports the company’s aspiration, firstly, to further help develop the domestic LPG market and promote the growth of indigenous companies and Nigeria’s economy.

    Attah said: “NLNG remains the single largest supplier of Liquefied Petroleum Gas (LPG) over 50 per cent in Nigeria and looks to enable its expansion in future. We produce the LPG in our plant in Bonny, Rivers State, and transport it by sea to Lagos from where it is distributed to every part of the country. This assures the product availability, accessibility, and affordability which are central to us as a company. NLNG’s domestic LPG intervention scheme aligns with its business focus of bringing energy to the world and helping to build a better Nigeria.

    “A World Health Organisation (WHO) report on Household Air Pollution and Health published in May 2018, affirmed that about four million people die prematurely annually from illness attributable to air pollution from inefficient cooking practices, using solid fuels and kerosene. And local data suggest that about 100,000 women and children die in Nigeria annually from the same causative factors. We believe that the expansion and strengthening of the domestic LPG market can help to stem this tide in Nigeria.”

    On NLNG’s contribution to Nigerian Content, he said: “We work closely with the Nigeria Content Development and Monitoring Board (NCDMB) to ensure compliance with the Nigeria Oil and Gas Industry Content Development (NOGICD) Act 2010, consequent upon which we signed a Business to Business Service Level Agreement (SLA) with in June 2017, the first of its kind in the relationship between the oil and gas industry operators and NCDMB in Nigeria.

    “Examples of our Nigeria Content initiatives implementation include BGT Plus Project where over 80,000 metres of cable, manufactured in Nigeria by Nexans Kabelmetal, as well as 9,000 pieces of anodes, produced by Metec WA, were exported to South Korea for utilization  in the construction of 6 new Dual Fuel Diesel Engines (DFDE) LNG carriers.

    “PCMN/Berger Paints Nigeria Limited exported over 400,000 litres of Paints and Coatings and IO Furniture/Vina produced and exported movable furniture to South Korea, all for the construction of the LNG carriers. In addition, Nigerians were involved in the project at the Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) shipyards in South Korea.

    “The benefitting indigenous companies, some of whom were exporting their products for the very first time, earned revenues in excess of $10 million and international reputation as exporting companies. All these are testaments that great things can truly happen once we set our minds to achieve them. Same way, we believe and are working assiduously towards achieving the final investment decision (FID) for NLNG Train 7, which in addition to raising our LNG production capacity by 36%, from 22,000 million tonnes per annum to 30,000 million tonnes per annum, also has capacity for 1.0 MTPA in the DLPG market,” he said.

    Also at the ceremony, Executive Secretary, Nigerian Content Development and Monitoring Board, Simbi Kesiye Wabote, said the signing ceremony was a manifestation of the local content journey in the LPG sector, adding: “I commend NLNG for this bold endorsement of our local capacities and capabilities. It is certainly a confidence building move across board and I expect several operators and service providers to get inspirations from this milestone event and see the possibilities in our local content practice rather than the difficulties.”

    The 23,000 cubic metres vessel will be delivered in 2020.