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By Adewale Sanyaolu
Nigerians expecting a crash in the cost of Liquefied Petroleum Gas(LPG), popularly called cooking gas may have to wait a little longer.
Nigerians have consistently expressed concern over the skyrocketing cost of cooking gas from N3,500 for a 12.5kg cylinder to N10,000.
Fielding questions from energy reporters shortly after a tour of its facility in Apapa, Managing Director of NIPCO Plc, Mr. Suresh Kumar, said the local production of LPG was not at par with domestic demand, as the industry had expected that Nigeria should have grown to a two million metric tones per annum market. He however noted that the country was still struggling with one million tones per annnum.
The NIPCO boss explained that the local production of LPG from Nigeria LNG and some other International Oil Companies (IOCs) was not enough to meet local demand, even though the nation’s domestic LPG market recorded some progress between 2014 to 2020, growing consumption from 2, 000 metric tones per annum to 1.2 million metric tones in 2020.
‘‘But from 2020, we started witnessing a decline basically due to low local production and increased level of imports,’’.He said.
He explained that in order to meet up with the demand gap, the industry had to step up the volume of imports, with the cost of imported LPG far higher than locally produced ones.
Sunak equally noted that challenges around sourcing for forex to import LPG is also a contributory factor which has led to high cost of cooking gas.
According to him, the fluctuations in exchange rates between official and parallel markets which is N430 and N750/ Dollar respectively r5 was equally not helping matters.
Also speaking, Managing Director of NIPCO Gas, Nagendra Verma, added that his company has deepened gas investment and market leadership in the country.
“We started our CNG operations in 2009 in Benin City by providing natural gas to Industries by way of PNG and CNG and to automobiles by way of AutoGas (AutoCNG). NIPCO Gas is the pioneer company in CNG distribution in Nigeria.
Presently, NIPCO Gas operates 12 CNG stations in Edo, Kogi, Delta, Ogun state, and Abuja. Four CNG stations are at various stages of construction and approval in Oyo, Lagos, Akwa Ibom, and Abuja FCT.
These CNG stations cater for auto gas requirement of vehicles, providing a cleaner, safer, economical, proven, and indigenous fuel.
NIPCO Gas operates approximately 40 kilometers of pipeline network in Benin city and approximately 50 km pipeline network on Lagos lbadan expressway and energies industries for their power requirements by way of providing piped natural gas (PNG). PNG is most economical, safe, and convenient to use,’’.
Verma disclosed further thatNIPCO Gas, in partnership with NNPC Gas Marketing Limited (NGML), is presently constructing approximately 80 kilometres of pipeline in phased manner from Sagamu to lbadan which will cater for industries’ power and fuel requirements.”
According to him, the pipeline construction work is progressing in full swing presently with the first phase expected to be completed by the end of 2023.
“NIPCO Gas, in partnership with NGML, is also constructing gas distribution infrastructure in Lekki Zone. Pipeline construction within Lekki Free Zone Development Company is ongoing.
The pipeline and city gate station are under construction. Nipco Gas has planned to commission the gas infrastructure and start supplying natural gas to customers in Q2, 2024.”
