NNPC moves to bolster domestic LPG consumption
The Nigerian National Petroleum Corporation (NNPC) said its partnering some Spanish companies in the area of Liquefied Petroleum Gas (LPG) also known as cooking gas in order to bolster it consumption in the country.
To achieve this the corporation would ensure the rehabilitation of it refineries so that it would produce enough LPG for the Nigerian market at affordable prices.
Maikanti Kachalla Baru, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) stated this when Alfonso Barnuevo, the Spanish Ambassador to Nigeria, paid him a courtesy visit.
He also expressed NNPC’s desire to boost safer energy utilisation in the country through promoting LPG consumption.
According to the NNPC boss, the corporation as an integrated Oil and Gas Company is currently undergoing transformation, which includes increasing the Corporation’s refining capacity.
He added that the Corporation would work closely with the Spanish National Oil Company, REPSOL to improve the technical capacities of the refineries.
“As you know, we have challenges with our refineries and with REPSOL refining about 900,000 barrels of crude oil per day, we can collaborate on that, going forward,” Baru noted.
The statement is coming on the heel cries from the Nigerian public as regards the astronomically increase in the price of LPG in recent times.
Consumers are groaning over the rising prices of Liquefied Petroleum Gas and kerosene at depots across the country in the last one month, BusinessDay investigations across the country, spanning from Lagos, Port Harcourt and Abuja have revealed.
The consumers, hard hit by low purchasing power and rising inflation that has brought about soaring prices of goods and services are currently exploring alternatives in coal and firewood despite the accompanying health hazards and.
The implication is that, the high demand for coal will bring about deforestation as this could lead to felling of trees for firewood, which are used to produce coal and this is also against the green zone forestation.
BusinessDay checks around Lagos, Port Harcourt, Abuja and other states revealed that the price of Liquefied Petroleum Gas popularly referred to as cooking gas has risen between 40 to 53 percent in the last one months due to delay in supply.
In Lagos metropolis, 50kg gas cylinder rose by over 50 percent from N7, 500 to sell for N16, 000. 12.5 kg gas which sold for between N2, 700 and N3,000 now sells for betweenN3, 500 to N4, 300.
Also, 6kg gas rose to sell for between N1, 800 and N2, 000 from between N 1,400 and N1,500, while the 4.5kg camp gas which sold for between N700 and N800 now sells for N1,200.
The NNPC executive stated that while the refineries are being fixed the corporation also have the opportunity to bring in more petroleum products into the country to meet our domestic needs.
He stated that the NNPC was also working on the Trans Sahara Gas Pipeline Project and would rely on the technical support of some Spanish companies towards addressing the challenges of gas supply.
Earlier, Barnuevo said Nigeria and Spain have an established cordial relationship dating back to over three decades.
“This visit is to further strengthen these good ties between our nations and in particular, between NNPC and REPSOL,” Barvueno stated.
According to him, Spain is Nigeria’s second best client in the area of oil and gas. The country currently buys about 4.6billion Euros worth of oil and gas from Nigeria.
He explained that in the first Quarter of 2015, Spain represents 9 per cent of the total export from Nigeria. “Therefore, NNPC and REPSOL will benefit tremendously from sustaining this collaboration,’ the ambassador added.
Source: Business Day