NIPCO Plc, the
marketing subsidiary of the Independent Petroleum Marketers Association
of Nigeria (IPMAN), will work with the Nigeria Liquefied Natural Gas
(NLNG) for the development of the local gas market. This laid to rest
the long standing disagreement over others using NIPCO’s Liquefied
Petroleum Gas (LPG) storage terminal for the storage and evacuation of
products.
Lawal Taofeek, the
corporate affairs manager, said last weekend that the company will soon
sign an agreement as one of the off-takers licenced to participate in
the NLNG programme to promote the supply and distribution of natural
gas in the country, having fulfilled all conditions set by the NLNG.
During the
familiarisation visit of the 4,500 metric tons per annum (MTPA)
capacity LPG storage terminal located in Apapa in Lagos, NLNG managing
director, Chima Ibeneche, told his NIPCO counterpart, Venkatapathy
Venkatraman, that the agreement would go a long way in enhancing the
Federal Government’s aspiration to encourage more Nigerians in using
gas for domestic purposes.
Abundant gas resources
“With the abundant
gas resources in this country, Nigeria is not supposed to be among the
committee of nations still using firewood for domestic cooking,
considering the attendant effect of such activity on deforestation as
well as negative impact on the environment. There is no plausible
excuse to support this arrangement,” Mr. Ibeneche said.
Though he explained
that NLNG’s original business model was not along the line of domestic
gas supply, as the company was charged LNG production for export, Mr.
Ibeneche said the company ventured into local supplies in 2007 in a bid
to promote gas as a cheaper alternative domestic fuel for Nigerian
homes.
He foresees an
improving local LPG supply market in the horizon with the involvement
of private entities like NIPCO, that have committed substantial
investments in developing the requisite infrastructure for the
industry, adding that the approval of the company as one of its of
off-takers would enhance the growth of the market.
Mr. Venkatraman
said the company went into the country’s domestic gas supply market in
response to the Federal Government invitation for genuine investors’
involvement in providing necessary infrastructure to facilitate the
development of the domestic gas market.
Apart for the
investment in the fully automated 4,500 MT capacity LPG terminal,
considered to be the second biggest in the country, Mr. Venkatraman
said NIPCO has also invested in transportation with the procurement of
over 20 bulk tankers to facilitate evacuation of gas to consumers
across the country.
He disclosed that
as part of its effort to make gas easily accessible to consumers, the
company is currently deploying LPG skids for the cooking needs of
Nigerian homes, and promoting LPG use as auto fuel. LPG Skid is the
latest technology in mini filling stations for dispensing gas to
households and vehicles.
Similarly, the
company, in conjunction with the Nigerian Gas Company (NGC), has opened
three Compressed Natural Gas (CNG) filling stations as well as a
fitment workshop in Benin, Edo State, as part of its vision to
revolutionalise CNG use as a vehicular fuel in the country.
