The Nation Newspaper

Tag: LPG

  • LPG use will save Nigeria trees from destruction

    Nigeria will save millions of trees from destruction if many Nigerians switch over to use of liquefied petroleum gas (LPG), a report hass said.

    The report titled: “The socio-economic benefits of using liquefied petroleum gas (LPG) in Nigeria and produced by ‘Concerned Liquefied Petroleum Gas Development Association of Nigeria(CLPDGAS)’’, said the Federal Government will  save millions of trees from destruction, once it provides LPG for cooking for its teeming population.

    It said the climatic impact of using millions of trees for cooking would be huge, urging stakeholders to fast-track the use of LPG for domestic and industrial purposes.

    He said deforestation causes exposure to the ozone layer, outbreak of diseases and others.

    The report said: “To save Nigeria from ecological problems caused by cutting down of trees, the Federal Government must try and do something to increase the usage of LPG in the country. When LPG use is increased, the desire to cut trees and use them as firewood would not be there.

    Also, the Chief Executive Officer, Nigeria Association of Liquefied Petroleum Gas Marketers (NALPGAM), Mr. Bassey Essien, said the increase in use of LPG would reduce the menace of tree cutting for cooking.

    He said the use of firewood for cooking was harmful, because it produces smokes, adding that the smoke causes respiratory problems  when inhaled over time.

    According to him, the financial and health implications of using charcoal and firewood for cooking are huge, arguing that the issue has resulted in the death of many people.

    “Based on this, the association is advocating for increase in the use of LPG in the country. We have organised many advocacy programmes in order to sensitize Nigerians on the use of LPG. LPG is a clean energy, friendly to the environment and cheaper when compared to use of kerosene, firewood and charcoal for cooking,” he added.

  • Marketers set to increase LPG price

    Marketers set to increase LPG price

    Liquefied Petroleum Gas (LPG) marketers yesterday in Lagos, agreed to increase the price of the domestic cooking gas by between 70 per cent and 100 per cent, following the scarcity of the product.

    The marketers lamented that problems, such as rising cost of buying LPG from terminal owners such as Pipelines and Product Marketing Company (PPMC), Algasco and others were taking toll on them. They also highlighted hitches in the supply chain, and monopoly as reasons behind the planned increase in the price of LPG.

    The Executive Secretary, Nigeria Association of Liquefied Petroleum Gas Marketers (NALPGAM), Bassey Essien, who spoke a stakeholders’ forum in Lagos, said the cost of obtaining LPG from terminal operators has increased in the past few days. He added that the development necessitated a corresponding increase in the price of the product.

    He said: ‘’Last week Tuesday, marketers bought 20 metric tonnes of LPG from terminal owners for N2.4million; the price rose to N2.6million on Thursday;  N3milliion on Friday; and  N3.5million  this Monday. “Based on this, marketers have agreed to increase the price, at which they are selling LPG to both the individual and industrial users.  “This is the only way marketers can recoup their investments and grow. By this, people would now be filling 12.7kilogramme cylinder with for between N3, 500 or N4, 000, as against N2, 800.’’

    Essien said NAFGAS and PPMC terminals are mostly used for distribution of LPG while other terminals are sparingly used.

    He said: ‘’As a result of this, most terminals are deliberately starved of gas. This means that marketers have no choice but to buy LPG from PPMC and NAFGAS terminals at a higher price.  In the light of this, the two firms are controlling the LPG market, by determining who to sell LPG to. Often times, few marketers have benefitted, while others have not. From all indications, a monopoly has been overtly or covertly created in the LPG market;  whenever a system is monopolistic in nature, few individuals or firms dominate business activities.”

     

  • ‘LPG scarcity imminent’

    ‘LPG scarcity imminent’

    Another round of Liquefied Petroleum Gas (LPG) scarcity is imminent, unless the Federal Government takes urgent steps to avert it, The Nation learnt at the weekend.

    LPG  dedicated vessels have not come to Lagos from the Nigerian National Liquefied Gas (NLNG) in Bonny, Rivers State, in the last five weeks, fuelling speculations of an impending scarcity.

    Sources close to Apapa Jetty in Lagos, said the Federal Government has been using the jetty for the supply of petrol, making it difficult for LPG vessels to berth in the jetty.

    “For weeks now, no single LPG vessel has berthed in Apapa jetty in the last one month, owing to the fact that the Federal Government has given the jetty consideration to deliver only PMS. It is only NAFGAS that supplies LPG in a smaller proportion. The situation is becoming worrisome as LPG distributors, mainly oil marketing companies are unable to get the product and supply the market,” a source said.

    The source, who spoke on condition of anonymity, said there was a vacumn in the market which must be filled as soon as possible, if scarcity must be averted.

    “What I know is that vessels have not been coming to supply LPG in recent times. Even, if a vessel arrives Lagos this weekend, its content is going to be rationed among the users,” he added.

    However, a worker of MRS Limited, Olarenwaju Johnson, said he was not aware of  the development.

    He said vessels have been discharging fuel in Lagos, stressing that marketers are selling the product.

    It would be recalled that Oando and other major oil marketing companies are supplying LPG to the market. The firms have opened outlets across the country, in order to make more people use the product.

  • ‘Why LPG target remains unrealistic’

    ‘Why LPG target remains unrealistic’

    Nigeria’s inability to meet its yearly target of two million metric tonnes of Liquefied Petroleum Gas (LPG) is caused by inadequate infrastructure, delays in discharging the product at the terminals approved by the Federal Government, market inability to absorb the product, among others, the Chief Executive Officer, Nigerian Liquefied and Natural Gas (NLNG), Mr Babs Omotowa has said.

    He said the industry is supplying less than 400,000 metric tonnes of LPG yearly, arguing that the figure is far below the targeted three million metric tonnes.

    Fielding questions from reporters in Lagos, during the presentation of NLNG’s  Facts and Figures, Omotowa said the capacity of the LPG market is very low, adding that it could not absorb huge percentage.

    He said: “The consumption of LPG has grown from 40,000 metric tonnes in 2007 to over 320,000 metric tonnes in 2015.  In spite of this, the industry is yet to meet its target.Various problems are accounted for this development. First is the issue of the capacity of the market, which is very low and as a result, cannot absorb LPG in large quantities. Secondly, the delay in discharging the product at various designated terminals in the country is another problem. Thirdly, trucking or transporting LPG is a problem.  Making the product available to consumers in far places, such as the North is a problem. Trucks that are conveying the product spend days before they get to their destination.

    ‘’If a truck is taking LPG to a place like North, the driver is going to spend days, as well as incurring more cost. This would increase the cost of the product,” he said.

    According to him, NLNG has the capacity to supply more than 400,000 metric tonnes yearly, provided the market is ready to absorb it.

    Omotowa said the scarcity of the product was occasional, arguing that the problem it is not that of NLNG, but of the industry.

    He said NLNG has succeeded in making cooking gas available at a cheaper rate, as well as providing alternative for consumers.

  • Group explores LPG impact on economy, environment

    The vital role liquefied petroleum gas (LPG) could play in helping Nigeria to reduce fossil fuel emissions, and develop its economy is one of many issues explored by the Oxford Business Group (OBG) in its latest economic report on the country.

    Speaking to OBG’s research team in the report titled ‘Nigeria 2016,’ the President of the Nigeria Liquefied Petroleum Gas Association (NLPGA), Mr. Dayo Adeshina, said much more could be done to “actively promote cleaner, safer LPG” at a time when combating climate change was high on the global agenda.

    “Nigeria is one of the largest producers of LPG in Africa, yet its per-capita consumption is one of the lowest on the continent,” he said. “While annual production stands at four million tonnes, Nigeria’s total yearly consumption is just 350,000 tonnes.”

    The NLPGA’s Deputy President, Mr. Nuhu Yakubu, who spoke in the report, also noted that aside from having the potential to assist the government as it targets bringing down fossil fuel emissions by 20 per cent within five years, LPG was also “tremendously versatile. LPG can be used for cooking, auto gas, heating, cooling and power generation,” he said, adding that with the right policies in place, the domestic LPG industry could really take off.

    With speculation mounting that President Muhammadu Buhari’s government plans to overhaul Nigeria’s subsidy system this year against a backdrop of lower global oil prices, OBG’s report will consider whether subsidies for kerosene, which cost the government an estimated N1.7trillion, could be among those removed. Oil is by far is the biggest contributor to Nigeria’s economy, accounting for two thirds of the country’s revenue and 90 per cent of foreign exchange earnings. However, plummeting prices have taken their toll on government income, giving weight to the government’s drive to diversify the economy.

    These and many other topical issues will be analysed in detail in the report: Nigeria 2016, which is due to be published in the coming months. The publication will contain a detailed, sector-by-sector guide for investors, alongside contributions from leading personalities.

    “We believe LPG has significant potential in Nigeria and that with the right enabling environment it can make a strong contribution to the national effort to reduce carbon emissions,” said Izabela Kruk, Country Director for OBG in Nigeria.

    The report, Nigeria 2016, will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. Oxford Business Group’s publication will be produced in partnership with the Nigerian Economic Summit Group and the law firm Ajumogobia and Okeke and will be available in print or online, he added

    The Federal Government has just stopped kerosene subsidy, and the price has gone up from N50 per litre to N83.

  • ‘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.’”

     

     

  • ‘Why LPG supply is unstable’

    The hitches in the supply of Liquefied Petroleum Gas (LPG) to the market, was as a result,  of activities at the North Oil Jetty (NOJ) and NIPCO terminals in Apapa, Lagos, and not from the Nigerian Liquefied and Natural Gas (NLNG), the President, Liquefied Petroleum Gas Association of Nigeria (LPGAN), Mr Dayo Adesina, has said.

    The two terminals were given priorities by the Federal Government, to discharge petroleum products such as petrol, kerosene and diesel, with a view to checking the scarcity of the products that has become a recurring decimal in the country.

    However, the development is making it increasingly difficult for LPG vessels at the terminals to discharge their content, and further meet the growing needs of the consumers in recent times.

    Adesina said as a result of this, LPG vessels were delayed for weeks or  months from emptying their contents, with consumers being starved of the products.

    He said LPGAN was convinced that NLNG can supply as much as one million tonnes of LPG into the market, in the event, that the market is ready to absorb it.

    He said: ‘’The problem of low supply of LPG, was not from NLNG. Rather the problem, was as a result of increased activities at the NOJ and NIPCO terminals that are given enough priorities to petrol and other white products.NLNG has increased supply of LPG from 150,000 tonnes per annum to 250,000 tonnes per annum, and could go as far one million, once the market can absorb it.’’

    According to him, NOJ and NIPCO terminals are multi-product terminals that are used in discharging energy commodities to consumers, stressing that the idea is inhibiting the flow LPG to the market.

    Adesina said NAFGAS is the only terminal that is dedicated by the Federal Government, to supply LPG to the market, adding that the terminal supplies 8,000 tonnes.

    ‘’NLNG is doing what is expected of it, as regards providing LPG, which is regarded as cleaner, safer, and healthy source of energy to the market.  NLNG goes as far as chartering vessels that would bring the product from its base in Rivers State to Lagos. But the problem has always been the failure of the terminals to discharge the product as and when due.’’ he added.

    He said some companies import LPG from Niger Republic, whenever the vessels are unable to discharge the product due to delay at the terminals.

    It would be recall that the country has witnessed scarcity of LPG, with stakeholders such as operators, marketers both at the wholesale and retail end of the market, at the receiving end.

  • LPG demand outstrips supply

    LPG demand outstrips supply

    The 250,000 tons of Liquefied Petroleum Gas(LPG) being supplied into the market yearly by the Nigerian Liquefied and Natural Gas(NLNG) Limited  is grossly insufficient to meet the growing needs of consumers in the country, The Nation has learnt.

    It was gathered that immediately LPG arrived Northern Oil Jetty( NOJ) and NAFGAS plant  in Apapa, Lagos, from the NNLG headquarters in Bonny, River State, the product spends few days as marketers swoop on it to get their share of the market for onward delivery to  consumers.

    Industry sources said there has been marked increase in consumption in LPG by both household and industrial consumers in the country. NLNG had also increased its supply of the product few years ago, from 150,000 tons to 250,000 tons in order to meet the needs of the domestic market.

    A source said many of the oil marketing companies in the LPG supply chain now run out of the product no sooner had vessels delivered the household cooking fuel to the marketers.

    The issue has created competition among marketers as they struggle to get enough products for sale, the source added.

    The President, Liquefied Petroleum Gas Association of Nigeria (LPGAN), Mr Dapo Adesina, said the demand of the product has outstripped its supply, adding that the realities on ground suggest that more LPG needed to be dedicated to the domestic market by NLNG.

    He explained that the paradigm shift in the use of kerosene to LPG, which is regarded as a cheaper, reliable and cleaner source of energy, accounted for the increase in demand for LPG.

    Adesina said from all indications, the 250,000 tons from NLNG could no longer meet the needs of the consumers, urging the NLNG to increase its production and supply to local consumers.

    He said campaigns on the use of LPG for cooking have increased among stakeholders in the value chain, adding that these efforts have paid off as more people now use LPG.

    He said operators such as retailers, wholesalers, LPG plant owners have also grown their business as the consumption level went up, fuelling more investment and returns on investment (RoI) in the sub-sector.

    Also, the former, Executive Secretary, Petroleum Products Pricing and Regulatory Agency (PPPRA), Reginald Stanley said countries such as United States, United Kingdom, United Arab Emirates, and others have developed their LPG market very well, adding that the only way the local LPG market could compete with them is for the Federal Government to strengthen the production and sale of cooking gas.

    The Nigerian National Petroleum Corporation (NNPC), oil marketers such as Oando, Nipco and others have been campaigning vigorously for the use of LPG.

  • Lagos votes N300m for LPG utilisation

    Lagos votes N300m for LPG utilisation

    The Lagos State Government has earmarked N300 million as intervention to aid the campaign targeted at boosting utilisation of liquefied  petroleum gas (LPG) also called cooking gas, as against other fuels under its programme tagged Eko Gas .

    The Commissioner for Energy and Mineral Resources, Taofiq Ajibade Tijani, stated this during a road-show at Isolo Local Government Area to sensitise the public on the need to switch over to cooking gas.

    At such road-shows, the state government through the Eko Gas initiative gives out filled gas cylinders with accessories free  to low income earners, particularly market women. At Isolo, 1000 cylinders and accessories were given out.

    Tijani said besides the vote by the state government, they are in partnership with major players in the LPG sector such as Chimons, Oando, Strategy Alliance and Banner Energy to enhance acceptance and switch over to cooking gas.

    The commissioner, who spoke to The Nation on the sideline, said: This is an initiative of Lagos State Government to promote the use of LPG (cooking gas) as fuel of choice for cooking knowing that it a fuel that is environmentally friendly and brings good health to people. So, the Governor of the state, Babatunde Fashola, has approved that Lagosians switch to using LPG rather than using kerosene.

    “Today’s occasion is to flag-off another road show, which we started last year. We started with Surulere last year, moved to Ikorodu and now in Isolo and we want to cover all the administrative areas of Lagos to sensitise the masses on the need to deride unfriendly fuels.”

    On the distribution of gas cylinders and accessories free to Lagosian, he said that 1000 was distributed at Isolo adding that their plan is to sample round and give the gas to selected low income earners. “We might not able to cover all the people that we should but we will make sure we get to as many people as possible and by next year again we can get another vote and funding to cover more people

    “Our intervention is to make sure we give free to people so that they can try it. Between last year and this year, the governor approved N300 million for this initiative and we have been able to acquire those LPG from the stakeholders such Chimons, Oando, Strategy Alliance, and all the people  that are already doing business in LPG. They are giving us all the support,” he added.

    He also noted that from the areas covered so far, “the initiative has been very successful and I can give it 95 per  cent, and it will get better as we move along”.

  • Lagos partners firm on LPG use

    The Lagos State Commissioner for Energy and Mineral Resources, Taofiq Tijani, has called for more strategic partnership with Nipco Plc to  enhance the use of liquefied petroleum gas (LPG) also called cooking gas, for rural dwellers and low income earners.

    Such partnership, he said, would broaden options for the implementation of the government’s Eko Gas Initiative launched last year, noting the company’s massive storage capacity at its LPG plant in Apapa, Lagos.

    Speaking during a visit to Nipco pavilion at the just-concluded African Outdoor Advertising Conference & Exhibition hosted by the Lagos State Signage and Advertisement Agency, he said he was delighted to see the small cylinders showcased by Nipco.

    The Eko Gas scheme, he said, represents an integral part of the LPG project, aimed at encouraging the use of LPG and actualising the  administration’s efforts to ensure a safer and cleaner environment   reduce greenhouse emission.

    Tijani said Nipco’s contribution to boost LPG use has been substantial adding that the introduction of smaller cylinders would further deepen consumption as low income earners can easily afford it.

    He also solicited Nipco’s support in the provision of skids across the state to guarantee supply at all times, stressing that the government will provide an enabling environment for the actualisation of this objective. He explained that the skids were expected to serve as refilling plants for gas cylinders while also meeting the needs of the residents in the localities where they are located.

    “With Nipco and other stakeholders’ support, the skids can be placed in strategic points to guarantee    gas supply to end-users and Lagos residents can be assured of better health, a cleaner environment, more effective and faster cooking  times ,” he said.

    Nipco’s Manager Corporate Affairs, Taofeek Lawal, said the firm’s resolve to promote use of LPG  remains undaunted and that part of the strategy is the company’s participation at the conference.

    Lawal said since Nipco’s LPG plant was inaugurated in 2009, it has remained a benchmark in the sector especially in providing necessary infrastructure that aids supply of gas for domestic cooking.

    He noted that the 4,500MT storage facility with ancillary transport infrastructure to deliver gas to bottling plants across the country could fast-track actualisation of the Eko Gas initiative aimed at making Lagos residents switch to cooking gas.

    Lawal listed the precautionary measures for safety in using cooking gas to include lighting matches before switching on the burner, while cooking never leave the stove unattended to or allow children to operate an LPG appliance, ensure flexible hoses are as short as possible, fully visible and secured without joint leaks, inspect the rubber hoses regularly, replace if colour fades or when signs of wear /tear /damage are detected, and use appropriate pressure regulators and never tamper with the pressure settings.