Mr. Dayo Adeshina, program director of the national liquefied petroleum gas (LPG) expansion plan in the vice president’s office, said the government is aiming for the installation of five gas terminals to boost the penetration of LPG in the country.
Adeshina made this known during a special interview with the Nigerian News Agency (NAN) in Abuja on Sunday.
“From 2017 to 2020, the market grew from 750,000 tonnes to 1,175,000 tonnes and with government encouragement there were approximately five new terminals to receive LPG from NLNG nationwide.
“These are coastal terminals whose products you could see, not inland terminals,” he said.
He said the terminals are located in Ogara, Warri, Port Harcourt, Calabar and Lagos.
“In July or at the latest August another terminal will be put into operation in Warri and by the last quarter of this year the first phase of Rano in Lagos will also be put into operation.
“So we do a lot in terms of procurement, we hire a lot of investors for product terminals but apart from that, for sustainability, we also hire operators from marginal fields.
“Previously, many marginal field operators would re-inject the gas or flare it, we expect a significant volume to come from Seplat joint ventures with NNPC.
“Just in December, NPDC, a subsidiary of NNPC, went into operation, another in Delta, Kwale hydrocarbons came into operation, green power, hopefully, is also expected to come into operation this year.
“We are also closely monitoring the PanOcean installation despite being with AMCON, hoping that a significant volume will come from it, all other things being equal,” he said.
Adeshina added that the government is also committing certain international oil companies (IOCs) to access the domestic gas supply obligations they have.
He said sustainability was key to the whole project, adding that the government did not want to commit to grants because it had never been ineffective.
According to him, the government’s goal is to ensure adequate supply and being a deregulated product, competition will help drive down prices. (NAN)
