The rising price of crude oil and its derivatives at the world market has been said be responsible for the current rise in Liquefied Petroleum Gas, LPG, also known as cooking gas.
This is coming even as the Nigerian National Petroleum Company (NNPC)
assured Nigerians that it is working round the clock to boost the supply of LPG to ensure a crash of the price.
The Group Managing Director of NNPC, Mele Kyari made this known during the inauguration of Emadeb Energy Services Limited’s 120MT LPG Storage and Bottling Plant in Abuja.
According to him, “Two things are at play; one is the supply and the other is the international price of gas. It (price) moves with the price of every other petroleum product including crude oil and its derivatives. So it is a reflection of what is happening in the international market.
“What we are doing is to increase supply. Once supply is increased the prices will come down.
“The newly-inaugurated LPG plant was going to reduce the cost of energy for Nigerians for the fact that LPG is cheaper than any other product you can think of, especially as cooking fuel.”
He commended Emadeb Energy Services Limited for building the LPG plant in Abuja, explaining that the project aligned with one of the steps the Federal Government had taken to provide gas for its citizenry.
Kyari stated that, “We are aware that a lot of institutions and companies are doing this across the country. We are selecting this in line with Mr President’s objectives to make this the decade of gas.
“One of the many ways investors could key into the decade of gas initiative was to have facilities like this for auto-gas conversion, and also to ensure that LPG is easily accessible to people.
“The global energy transition had made the investment climate very ripe for gas even as he assured those investing in LPG project that the NNPC would guarantee supply of gas to their facilities.
“We know that the investment climate is very ripe for auto-gas and auto fuel, especially in terms of LPG as a transition fuel globally. So, we know that this is a big market for Nigerian companies and this is one of the great companies that we have around.
“As NNPC, we will come in and we will guarantee supply. That is very important for us as a business. As you are aware, we are NNPC Limited in Nigeria and we also have to make money for Nigeria. We will be there in the upstream to provide the gas.”
On his part, the Chief Executive Officer of Emadeb Energy Services Ltd, Mr Debo Olujimi, noted that although the capacity of the plant was currently 120MT, plans are onground to expand it to 240MT in the next 18 months.
He described the business of gas infrastructure as capital intensive, and urged the federal government to encourage private investors to get value for their money.