The Petroleum Products Pricing Regulatory Agency (PPPRA) report on LPG supplied in September 2021, indicates that out of the 76,578.986 metric tonnes (MT) of LPG supplied nationwide, 49,453.081MT was locally produced while 27,125.905MT was imported.
According to a statement signed by General Manager, Corporate Services Kimchi Apollo, the regulators LPG data showed that 49,453.081MT was supplied into the domestic market by Algasco, Stockgap, NIPCO, 11 plc, Prudent, Greenville Natural Gas, PNG Gas, NPDC and Ashtavinayak Hydrocarbon Ltd with 66.58% of the supply sourced from the NLNG, whilst 27,125.905 MT was imported by Rainoil, Algasco and Prudent.
“It is worthy to note that the quantity of LPG sourced locally rose from 38,040.457MT in August to 49,453.081MT in September, while importation reduced from 47,224.346MT to 27,125.905MT”
It is worthy to note that the quantity of LPG sourced locally rose from 38,040.457MT in August to 49,453.081MT in September, while importation reduced from 47,224.346MT to 27,125.905MT.
The marked improvement in local production reflects the success of His Excellency, President Muhammadu Buhari, GCFR and the Honorable Minister of State for Petroleum Resources, Chief Timipre Sylva in providing the right enabling business climate for the Gas industry to thrive.htt
Government policies and programmes such as the National Gas Policy (NGP), Nigeria Gas Flarek Commercialisation Programme (NGFCP), National Gas Expansion Programme (NGEP) and the Decade of Gas declaration are responsible for the quantum of investments we see today in the gas industry.
Some of these investments include the NPDC Oredo Integrated Gas Handling Facility, Kwale Hub Gas Processing Plants (PNG, Ashtavinayak Hydrocarbon) Greenville LNG, Rivers State and OSO/Bonny River Terminal project.
In terms of polices, the waiver of import duties on LPG production equipment as well as the Zero VAT for locally produced LPG have indeed heightened the prospects of domestic investment in the sector.
In addition, a Pioneer Status Incentive for some categories of LPG Investments was also introduced.