The Nigerian National Petroleum Company Limited (NNPCL) says it plans to supply 5 million metric tonnes of liquefied petroleum gas (cooking gas) in 2022, surpassing last year’s supply of 1.7mmt by 194 per cent.
To achieve this, the NNPCL said it would partner the Indian Oil Company (IOC) after the Asian country boosted its LPG penetration from 62 per cent in 2016 to 99.8 per cent in 2019.
Speaking at the World LPG Association India-Nigeria Summit 2022 in Abuja on Wednesday, the NNPCL Group Executive Director, Downstream, Engr. Adeyemi Adetunji, said Nigeria has a lot to learn from the Indian experience, adding that the company is positioned to deploy 740 LPG Micro-Distribution Centers (MDCS), 37 Filling Plants, and Skids in its 541 stations within the next three years.
Adetunji said: “Nigeria has identified its abundant gas resources as fuel for energy transition which informed her net zero commitments by 2060 and the declaration of 2021-2030 as decade of gas.
“NNPC Limited is an energy company with new investments in gas, power, and renewables.
“Key pipeline projects such as ELPS I1, OE5 and AKK to deliver a total of 6.2 billion cubic feet of gas per day to demand nodes across the country are at various stages of completion.
“We have strong presence in the LPG value chain contributing about 45 per cent of domestic supply via JVs (Oso Bonny River Terminal), affiliates (Nigeria LNG Ltd & Ashtavinayak Hydrocarbon Limited), and subsidiaries (NPDC).
“The initial target is to do 5 million metric tons, in the next two, three years, but there is the need to do much more. I believe that template will be revised very soon,” he stated.
Also speaking at the event, the Special Adviser to the Vice President on Economic Matters, Adeyemi Dipeolu, said while LPG penetration in the country was still very low, the Federal Government hopes to convert 30 million households to the use of LPG in 2027.
“Following the implementation of government’s gas expansion initiatives, and the presidential assent to the PIA investors stand in good stead to benefit from the vast opportunities available for unlocking Nigeria’s abundant gas resources for shared prosperity,” Dipeolu said.