By Emmanuel Addeh
The N250 billion gas expansion fund set aside by the Central Bank of Nigeria (CBN) to ramp up the production and consumption of of Liquefied Petroleum Gas (LPG) is capable of markedly improving the overall industry output, some industry watchers have said.
In the interim, the fund is expected to push consumption in the country to five million metric tonnes (mmt) by the end of next year and reduce the use of high carbon fuels like firewood.
The apex bank introduced the stimulus package under the National Gas Expansion Programme (NGEP) last year to attract investment in the gas value chain and spur its use in transportation as an alternative to fuel-powered cars.
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Published 30 May 2021
Industry players in the oil and gas sector have been urged to take advantage of the N250bn gas intervention fund set aside by the Central Bank of Nigeria to deepen gas consumption across the country.
Oil and gas experts and economic analysts said the target of expanding the consumption of Liquefied Petroleum Gas (cooking gas) in Nigeria would be substantially achieved with the appropriate deployment of the fund.
The use of cooking gas in Nigeria increased to one million metric tonnes in 2020 from about 400MT consumption level recorded four years ago.
Operators said the increase was on the backdrop of the removal of the subsidy on kerosene, but noted that LPG penetration was still far from the national target of five million metric tonnes set for next year.
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Published 13 May 2021
The Major Oil Marketers Association of Nigeria and the Independent Petroleum Marketers Association of Nigeria have said the National Gas Expansion Programme of the Federal Government will create immense opportunities.
The Chairman, MOMAN, Mr Adetunji Oyebanji, said as Liquefied Petroleum Gas was becoming more popular and looking at the country’s population and gas penetration, there was a huge gap.
According to him, this presents a huge opportunity for investors.
Oyebanji said, “Nigerians are used to generating equipment being powered by Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel). As we have an abundance of gas, it is a cheaper alternative to diesel.
Chiamaka Ozulumba
An indigenous energy firm, OMAA has rolled out Nigeria’s first locally assembled natural gas-powered buses and are already producing in volumes.
The roll out took place at its facility in Igbo Ukwu, Aguata Local Government Area, Anambra State in the presence of Dr. Ishaku Abner, technical assistant (Downstream) to the Hon. Minister of State for Petroleum Resources; Mrs. Pat Igwebuike, special adviser to the Anambra State Governor on Legal Matters and Dr. Mohammed M. Ibrahim, Chairman of the National Gas Expansion Programme (NGEP).
OMAA manufactures factory-fitted dual-fuel vehicles to meet the growing demand of vehicles that run on cleaner energy sources within Nigeria and across Africa.
Analysis: Nigeria's autogas utilisation drive impressive, but still a long way to go tribuneonlineng.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from tribuneonlineng.com Daily Mail and Mail on Sunday newspapers.