Prudent Energy Builds 6,000MT LPG Plant In Delta State
Prudent Energy and Services Limited, an indigenous operator in the downstream oil sector, has completed the construction of a 6,000-metric tonne liquefied petroleum gas plant in Delta State.
The Chief Executive Officer, Prudent Energy, Mr Abdulwasiu Sowami, said the company had made significant investment in the downstream sector of the nation’s oil and gas industry over the past few years.
He said in an interview in Lagos that the LPG plant was built in a bid to promote the consumption of cooking gas in the country in line with the current government policy.
He said, “There is a humongous opportunity; and the current statistics show that we are around 200 million and if you look at the LPG penetration, we are still just about 25 per cent. And with a growing population, the implication is that consumption of domestic gas will definitely increase.
“Again, for the past four years, the government has been trying to spearhead the utilisation of the LPG through the office of the Vice President. Technically, they have discouraged the Nigerian National Petroleum Corporation from importing Dual Purpose Kerosene and its consumption has reduced while interest in the LPG has increased. But there is inadequate LPG infrastructure in the country.”
The company, through its subsidiary, Ignite Investments and Commodities Limited, recently acquired Mr Femi Otedola’s 74.02 per cent shareholding in Forte Oil Plc.
“Forte Oil has about 450 retail outlets, and 40 per cent to 50 per cent of them can take the LPG. So, that is part of our strategy to getting the product to the consumers. Presently, we are known as a bulk seller; people bring in cargoes and we sell in bulk to them,” Sowami said.
On the company’s plan for Forte Oil, he said, “My story is about creating value. And how do you create value? Value is an enduring thing; it is building legacies and this is a company that has existed for almost 50 years.
“Our plan is to take this company to the next level. We have the support of our bank to invest to take this company to where it should be. There is a lot of investment that needs to get into it. We are seriously playing in the aviation fuel space. We are fully back to diesel; we are going into the LPG; we are going into bitumen, and we are going into renewable energy.
“We are doing so much and I think the combination of Prudent Energy and Forte Oil will definitely create a lot of value for everybody.”
The Terminal Manager, Prudent Energy, Mr Oladimeji Oladoja, said the LPG plant had undergone a trial run, with the first vessel received last month.
“The LPG plant is a state-of-the-art facility as we can load two trucks at the same time. We have two loading gantries, and we can load about 20 trucks in a normal work day,” he added.