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Thursday 21 September 2023

Expect cheaper fuel as FG approves autogas plants


The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) had approved the construction of a gas plant to expand the product's availability in Nigeria.

The agency added that the gas projects are at the final stages of completion across the country, and some would be due in early 2024.

Farouk Ahmed, NMDPRA
CEO of NMDPRA Farouk Ahmed . Credit: Vithun Khamsong Source: Getty Images

According to the Chief Executive Officer of NMDPRA, Farouk Ahmed, harnessing the 209 trillion cubic feet of available natural gas in Nigeria remains critical for energy transition and industrialisation.

Ahmed said the new approval would see an additional 500 metric tons of LPG storage depot open in the Gwgwalada area of Abuja.

He said this is the right time to leverage Nigeria's vast gas resources.

Per the agency's CEO, the country has more than 209 TCF of gas, and the government has designated the product as a transition to cleaner energy, especially after petrol subsidy removal.

The NMDPRA boss added.' Nigeria's gas utilisation per capita is below that of other African countries'.

He stated that the new gas plants would provide jobs for Nigerians as the agency would guide investors through the process and provide support to enable players to meet their objectives in the construction process.

The Managing Director of Noretek Energy Limited, Edward Traore, said the new plant is critical to the company's more extensive strategy.

The recent comment comes as petrol marketers say they are rolling out about 7,000 autogas stations with nearly 500,000 trucks running on gas.

The Nigerian government has stated its commitment to pivot away from petrol to gas following subsidy removal from petrol.

President Bola Tinubu has asked relevant agencies to begin rolling out cheap and alternative fuel to cushion the effect of subsidy removal.

The motorists and transport operators in Nigeria will witness relief soon after the Nigerian government ends the petrol subsidy, which caused a spike in the product's price across the country.

The national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okoronkwo, revealed that the association is 90% ready to roll out Compressed Natural Gas (CNG) as an alternative fuel, which would sell between N100 to N110 per litre before the end of June.

He stated this during an interview on Channels Television and stressed that CNG would serve as an alternative to petrol.

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