April 16, 2024

Gas utilisation by manufacturers, companies in Nigeria will reduce operational costs by 40% -NMDRPA

Oredola Adeola


Gas utilisation by companies and other industries operating in Nigeria has the tendency to reduce operational costs by 40 percent if they agree to convert their diesel generators to gas engines, the Nigerian Midstream and Downstream Petroleum Regulatory Authority(NMDPRA), has stated.


Engr. Farouk Ahmed, NMDPRA’s Chief Executive, made this recommendation during a one-day stakeholders engagement forum on “Gas Utilisation in Nigeria, held in Lagos, on Tuesday.

According to him, effective gas utilisation will earn Nigeria earn more revenues as well acheiving its commitment to sustainable development goals. He added that it will also ensure a cleaner and safer environment because of the friendly and cost-saving benefits  that it offer, compared with other fossil based fuels.


The ACE who was represented at the forum by Ogbugo Ukoha, NMDPRA, Executive Director, Distributions Systems, Storage and Retailing Infrastructure, noted that gas utilisation by companies in their operation areas is a cost-effective mechanism that would save companies from expenditure on costly fuel to generate offgrid electricity.

Engr. Farouk said, “We encourage operators and businesses to take advantage of the new opportunities in the gas value chain for sustainable business growth, by positioning their energy needs to embrace gas derivatives (LNG, LPG, CNG, Auotogas, Propane & Butane) in order to hedge against future global uncertainties to Diesel supply.


He disclosed that the objective of the stakeholders’ engagement forum is to ensure the transition of huge consumers of diesel and petrol to natural gas in the operations.


Farouk said, “We are creating awareness on the dangers of installing unlicensed diesel storage and the need for any company, operating in whichever sector, to obtain licenses from the Authority to store large quantities of petroleum products.


The ACE also encouraged all petroleum handlers to comply fully with the provisions of the Petroleum Industry Act(PIA) and NMDPRA gazetted regulations to avoid sanctions from the Authority.

Engr. Farouk however reaffirmed the Authority’s commitment to enabling businesses and ensuring the growth of the midstream and downstream sectors in Nigeria.


He also urged operators to complete the registration of their premises, including strict adherence to safety procedures to limit their exposure to incessant fire disasters.


He further revealed that the Federal Government’s gas initiatives and policy frameworks including Decade of Gas and the National Gas Expansion programmes are some of the measures put in place to reposition the country’s economy for sustainable growth and accelerated development through the adoption and optimisation of its gas potentials.


The ACE noted that apart from the benefit of clean cooking, gas has the potential to reduce Nigeria’s carbon footprint, mitigate the impact of climate change and help the country to achieve its net-zero target.