LPG Plants: NNPC To Invest $2.5bn
The Nigerian National Petroleum Corporation has revealed plans to invest $2.5bn in revamping Liquefied Petroleum Gas plants in the country.
The Chief Operating Officer, Downstream, NNPC, Henry Ikem-Obih, while speaking at the inauguration of LPG sales in 11 Plc’s stations in Lagos, said the NNPC was working to address infrastructural challenges facing LPG plants by revamping them to achieve a 90 per cent yield status.
Ikem-Obih said eight LPG plants located in Gombe, Ibadan, Makurdi, Enugu, Kano, Apapa, Osogbo and Ilorin had been revamped.
He added that discussions were in progress to connect all the stations through pipelines to bring LPG closer to consumers.
“We have had a lot of issues to battle with, ranging from logistics in moving LPG from the Niger Delta to inland Nigeria. Other issues are with pricing and taxation.
With the support and encouragement of President Muhammadu Buhari, the NNPC Group Managing Director, Maikanti Baru, the Minister of State for Petroleum Resources, Ibe Kachikwu, stakeholders and players in the industry, the NNPC is at the forefront of tackling these challenges.” He said.
According to him, Nigeria has the largest gas reserves in Africa, and is the 10th largest producer of LPG globally.
He said the World Bank put Nigeria’s LPG consumption potential at about 3.2 million metric tonnes per annum, noting that the current consumption was 1.64 million MT per annum.
Ikem-Obih said he recognised the role of 11 Plc in ensuring the availability of cleaner fuels for domestic consumption, in line with the aspiration of the NNPC to boost LPG consumption in the country.
“I am happy that 11 Plc, being the oldest downstream company in Nigeria, is at the forefront of driving LPG consumption in Nigeria. I am also glad that the investment of Nipco in Mobil Oil Nigeria Plc has brought 11 Plc into the business of LPG fully,” he said.
The Managing Director, 11 Plc, Tunji Oyebanji, said the company was taking advantage of the government’s initiative for rapid investment in the LPG industry.
He said the firm had identified the potential for growth in the LPG industry and had been investing in gas kits as well as generating sets and human capital development.