Gas: We’re expecting 25,000MT capacity within six months-one year, says PPPRA
The Petroleum Products Pricing Regulatory Agency (PPPRA) said they are expecting additional 25,000MT capacity within the next six months to one year.
Speaking at the ongoing International Conference on LPG organised in Lagos by Nigeria LPG Association (NLPGA) in conjunction with LPG Summit Nigeria, the General Manager, Gas & Renewables, Petroleum Products Pricing Regulatory Agency (PPPRA), Olasupo Agbaje, stated that the government has realised that LPG, more than ever before is of relevance with all parameters, which demand that all hands be on deck.
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He disclosed that, the government is working towards adding extra 25,000 metric tonnes (MT) capacity to the existing production capacity of Liquefied Petroleum Gas (LPG) otherwise called cooking gas to avert future scarcity of the all-important multi-purpose product, he added ” we believe that when there is an abundance in supply, cooking gas prices will always be affordable and scarcity will always be averted”
“We heard that capacity has grown to almost 50,000 MT in the last 10 years compared to when we started with about 4000MT active capacity and consumption has also increased significantly to current 98,000MT hoping it will hit 100,000MT by December 2019.
“We are anticipating that our per capita consumption will rise from 1.8kilogram (kg) per person a few years back to 4.4kg per capita end of 2019. So the potentials are huge and there is a need to harness them as much as we can” he stated.
He added that, the agency has identified challenges that will inhibit the effective flow of products in the market and address them and also currently focusing on strategies that will deepen penetration, which includes cylinder programme, starters’ package and other programmes that will help in achieving our objectives.
He said, the government is also looking into taxes and other levies that may help to deepen penetration of LPG usage as the process is ongoing to organise a stakeholders engagement meeting, where enlightenment and sensitisation programme can be adopted because this is what is done in other countries.
The Chief Marketing Officer, Matrix Energy, Oluwatoyin Showunmi, called for more collaboration among stakeholders to address the challenges confronting the LPG usage in the country.
She stressed that there is a need to close the knowledge gap in the gas industry, as some skid is yet to upgrade to the latest technology and new innovations as it is going on in the LPG industry.
‘There have to be some standards before PPPRA and DPR can approve licenses for gas plants to ensure safety and boost consumers confidence”, she said.
