FG seeks $6bn for infrastructure rollout to achieve 5MMT gas consumption target
The Federal Government has revealed that the country requires at least USD$6billion for the Liquefied Petroleum Gas(LPG) infrastructure rollout to meet 5 million metric tonnes (MMT) LPG consumption target by 2027.
Prof. Yemi Osinbajo, Vice President made this known at the World Liquefied Petroleum Gas Association forum, LPG Week’ 21, in Dubai, United Arab Emirates,UAE.
He disclosed that the government has established a 20million cylinder injection scheme, adding that 5million to 10million out of the 20million are expected to be introduced in the pilot States in 2022.
According to him, our target is 5,000,000MT, and this requires at least USD$6billion for the required LPG infrastructure rollout to meet our target.
Osinbajo said, “Nigeria represents a unique LPG investment destination for setting up manufacturing facilities and support services for the expanded LPG value chain in the National LPG Expansion Implementation Plan.
The investment opportunities according to the VP, vary from inland and coastal terminals to cylinder filling plants, bobtails, semi-trailers, valves, and regulators.
He further said that the Nigerian government is ready and willing to support investors willing to partner in driving the National LPG expansion plan.
VP Osinbajo said, “To ensure the successful implementation of our Domestic LPG Expansion Initiatives, some of the interventions we have made since 2017/2018 are to develop LPG policy as part of our national gas policy.
“This is effectively transiting the household domestic cooking segment from a Consumer Cylinder Owned Model to a Marketer Cylinder Owned Model where the marketers will be responsible for the distribution and retrieval of cylinders.
“We established the National Gas Flare Commercialization Programme – this would enable 3rd party investors to set up stripping plants and deliver more volumes of LPG to the domestic market.
As part of measures to scale up utilisation of Nigeria’s natural gas resources and to put spurs on Nigeria’s industrialization, Osinbajo said that the government has, through provisions in the new Petroleum Industry Act (PIA) 2021, elevated LPG as the fuel of choice compared to other competing fuels.