Nigeria presently produces locally, a major portion of the Liquified Petroleum Gad (LPG) consumed in the country, according to a report by the Petroleum Products Pricing Regulatory Agency (PPPRA).
PPPRA said, the feat was as a result of the enabling environment created by the Federal Government through its programmes and policies to attract investment into the entire gas value chain.
TheFact Nigeria reports that despite the fact that Nigeria is producing the major portion of the LPG consumed in the country, it has no direct positive effect on ordinary Nigerians as price of gas continues to skyrocket beyond their reach.
Meanwhile, PPPRA report on LPG supplied in September 2021, indicates that out of the 76,578.986 metric tonnes (MT) of LPG supplied nationwide, 49,453.081MT was locally produced while 27,125.905MT was imported.
In the month of September 2021, PPPRA LPG data show that 49,453.081MT was supplied into the domestic market by Algasco, Stockgap, NIPCO, 11 plc, Prudent, Greenville Natural Gas, PNG Gas, NPDC and Ashtavinayak Hydrocarbon Ltd with 66.58% of the supply sourced from the NLNG, whilst 27,125.905 MT was imported by Rainoil, Algasco and Prudent.
It is worthy to note that the quantity of LPG sourced locally rose from 38,040.457MT in August to 49,453.081MT in September, while importation reduced from 47,224.346MT to 27,125.905MT. The marked improvement in local production reflects the success of His Excellency, President Muhammadu Buhari, GCFR and the Honorable Minister of State for Petroleum Resources, Chief Timipre Sylva in providing the right enabling business climate for the Gas industry to thrive.
The General Manager, Corporate Services, PPPRA, Kimchi Apollo in a statement said, government policies and programmes such as the National Gas Policy (NGP), Nigeria Gas Flarek Commercialisation Programme (NGFCP), National Gas Expansion Programme (NGEP) and the Decade of Gas declaration are responsible for the quantum of investments we see today in the gas industry.
Some of these investments include the NPDC Oredo Integrated Gas Handling Facility, Kwale Hub Gas Processing Plants (PNG, Ashtavinayak Hydrocarbon) Greenville LNG, Rivers State and OSO/Bonny River Terminal project.
In terms of polices, the waiver of import duties on LPG production equipment as well as the Zero VAT for locally produced LPG have indeed heightened the prospects of domestic investment in the sector.
In addition, a Pioneer Status Incentive for some categories of LPG Investments was also introduced.
The PPPRA remains committed to the development of Nigeria’s vast gas resources and strengthening the entire value chain.
