1 month ago
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The Federal Ministry of Petroleum Resources and the Nigerian Midstream and Downstream Petroleum Regulatory Authority have committed to boosting the use of Liquefied Petroleum Gas (cooking gas) among Nigerians.
Officials from the petroleum ministry and the NMDPRA noted their commitment during the Nigerian Association of Liquefied Petroleum Gas Marketers’ 2024 National Conference themed ‘Sustainable Energy Growth in Nigeria’ in Lagos.
Stakeholders from the government, regulatory bodies, and industry players deliberated on strategies for enhancing LPG adoption across Nigeria.
In his keynote address, the Minister of State for Petroleum Resources (Gas), Ekeperikpe Ekpo, represented by a ministry official, Abel Nsa, highlighted the government’s dedication to increasing LPG penetration as part of the Decade of Gas Initiative.
According to Ekpo, “Our target is ambitious; to increase LPG consumption in Nigeria to five million metric tonnes per annum by 2030.”
He explained the government’s initiative required infrastructure expansion and creating favourable market conditions to attract investments in the LPG value chain.
Ekpo noted the health and environmental benefits of increased LPG adoption, saying it could reduce reliance on traditional biomass for cooking, which contributes to poor indoor air quality.
“LPG offers immediate and long-term benefits for our energy transition,” he stated, adding that the Federal Government was working on an LPG Cylinder Distribution Programme aimed at transitioning 250,000 homes to clean cooking within the next decade.
“We are working tirelessly to ensure that this programme reaches every corner of Nigeria,” Ekpo stated.
He addressed the role of LPG in energy security, asserting that “increasing LPG usage domestically will reduce the strain on our other energy resources, enhance energy security, and protect us from the volatility of international energy markets.”
The Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at the NMDPRA, Ogbugo Ukoha, identified key regulatory strategies aimed at fostering LPG growth.
Ukoha pointed out that despite the progress made, “optimum utilisation of LPG is currently constrained by many factors.”
He observed that to address the challenges, the industry needs to prioritise expanded gas processing capacity, local cylinder production, and improved compliance with safety standards.
Ukoha also discussed the Midstream and Downstream Gas Infrastructure Fund, which supports investments in LPG infrastructure.
“As recently as last week, the MDGIF awarded its first phase of equity participation in the total sum of N122bn to six gas infrastructure projects,” Ukoha revealed, urging LPG marketers to present qualified proposals for further funding.
He further emphasised the importance of collaboration, stating, “Achieving these goals will require close collaboration between industry stakeholders to ensure affordability, accessibility, and sustainability.”
The National President of NALPGAM, Abideen Olatunbosun, in his welcome address, acknowledged LPG plays a role in Nigeria’s energy future as he encouraged increased investment in infrastructure and technology to address the pressing challenges in the sector.
“Recent events in Nigeria have reshaped the oil and gas industry,” Olatunbosun said, citing changes brought about by the Petroleum Industry Act and the entrance of more indigenous investors into the sector.
Olatunbosun expressed optimism about the future of LPG as he called on stakeholders to work together, saying, “Let all of us be pillars of support to energy sustainability in Nigeria.”
