The Nigerian National Petroleum Company Limited NNPCL is poised to distribute 740 LPG Micro distribution centers and 37 filling plants in its 541 gas stations across the country via a new gas company.
This is part of its effort to enhance the affordability and accessibility of Liquified Petroleum Gas (LPG) in the country,
The Group Chief Executive Officer GCEO of the NNPC Limited Mallam Mele Kyari disclosed this in Abuja during the World Liquified Petroleum Gas Association summit held with its Indian couterpart, the Indian Oil Corporation Limited.
The summit with the theme, ‘Energizing the future: leveraging the Indian experience’, was targeted at learning and implementing India’s successful LPG models and advancements in the last ten years.
Represented by the Group Executive Director Downstream, Mr. Adeyemi Adetunji, stated that when the Indian Government pursued an intensive LPG penetration drive in the country by providing free cylinders, stoves and valves to users in 2016, it raised the increased the Indian LPG consumption to 99.8% by August 2019 from the 62% formally recorded in 2016 putting the country’s gas consumption at 30 million metric tons .
“Nigeria has identified its abundant gas resources as fuel for energy transition which informed her net zero commitments by 2060 and the declaration of 2021-2030 as decade of gas,” he said
Leveraging the Indian experience, Mele Kyari said the NNPCL is ready to increase in the next three years Nigeria’s 1.7 million metric tons of LPG consumption last year by providing about 740 LPG Micro distribution centers, 37 filling plants and 20 million cylinders in the next five years under the marketer cylinder owned model.
“NNPC is collaborating with the office of the vice-president and other stakeholders on establishment of Gas Funding Company Limited for the injection of 20 million cylinders in the next five years under the marketer cylinder owned model.” He said.
In his remarks, the Chairman of the Indian Oil Corporation Limited Mr. Shrikant Vaidya said LPG is a transformational fuel capable of poverty eradication and eliminating the use of firewood, coal and kerosene for cooking by millions of Nigerians.
According to a report by WHO, Vaidya said “smoke inhaled by women from unclean fuel is equivalent to smoking 400 sticks of cigarettes in an hour. Thus, ruining their health. Moreover, by releasing LPG connections directly into their homes, it empowers rural women.
“Driven by the inspiring stewardship of the NNPC, the Nigerian energy market is also one of the impressive growth trajectories,” he said.
He added: “I’m sure that the presence of officials from NNPC, Indian Oil and World LPG association at the summit will enrich the deliberation bordering global LPG penetration.”
Also speaking at the event, the Special Adviser to the President on Economic Matters in the office of the Vice-president, Mr. Adeyemi Dipeolu added that the Federal Government plans to convert 30 million households to the use of LPG by the year 2027.
