NNPC, Sahara JV sets to build LPG jetties across West Africa

Solomon Ezeme

As part of efforts to achieve the Federal Government’s LPG(cooking gas) penetration framework and expansion plan both geared towards encouraging the use of gas in households, power generation, auto-gas and industrial applications, the WAGL Energy Limited, a joint venture business of the Nigerian National Petroleum Company(NNPC) Limited and the Sahara Group, has revealed its plans to build jetties for LPG distribution.

The company made this known through Emmanuel Ubani, Managing Director, WAGL Energy Limited, in a press statement issued on Sunday.

The key objective of the NNPC Ltd and Sahara for the project, according to Ubani, is to facilitate the distribution of cooking gas across the sub-region.

This is against the backdrop of helping West Africa, especially Nigeria, achieve energy transition through natural gas.He urged the sub-region to increase investments in gas, as well as, create the right policies for developing gas infrastructure, particularly liquefaction and regasification plants, gas distribution, pipelines and/or gas distribution trucks, gas cylinder, to ensure easy distribution to homes and industries.

Ubani said, “Ensuring this requires both public and private investments at a level that allows for economies of scale, supporting in making the sector commercially viable.

“All parts of the value chain must be in place and functional, this also mean that a distribution system to enable feasible access for the users must exist. There is also need for a ready and vibrant market network which accommodates use of the alternative energy source,” he stated.

EnergyDay gathered that this new deal by WAGL Energy Limited, is targeted at driving NNPC’s five-year $1 billion investment plan announced in 2021, in line with the decade of gas and energy transition agenda of the FG.

The company had in May, 2022, took delivery of two 23,000 CBM Liquefied Petroleum Gas vessels at the Hyundai MIPO Shipyard in Ulsan, South Korea, with plans to add 10 vessels in 10 years to enhance Africa’s transition to cleaner fuels.

The vessels, MT BARUMK and MT SAPET, will increase the JV’s investment to over $300million out of its $1billion gas infrastructure commitment by 2026. The company’s fleet previously comprised MT Sahara Gas and MT Africa Gas.