shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » Cooking Gas: Nigeria Needs $750m For 5MMT Annual Consumption

Cooking Gas: Nigeria Needs $750m For 5MMT Annual Consumption

by Joshua
May 9, 2022
in Oil and Gas

Nigeria requires about $750m investment in the transportation and retailing infrastructure for Liquefied Petroleum Gas, popularly called cooking gas, to achieve the target of five million metric tonnes of annual consumption, operators in the LPG space have said.

COOKING GAS

Speaking at the 2nd Annual Virtual LPG workshop organised by the African Refiners and Distributors Association, which was attended by experts, they also stated Nigeria’s Gross Domestic Product might witness $1bn growth yearly through optimisation of flared gas.

In his presentation at the workshop, the Executive Director, Rainoil Limited, Emmanuel Omuojine, stated that the investments would also be needed in gas adoption and utilisation.

He said, “Nigeria requires about $750m investment in LPG transport and retailing infrastructure across the country to achieve the target of five million metric tonnes annual consumption.

“Investing in gas adoption and utilisation, e.g. LPG bulk storage, LPG trucks, LPG filling plants, LPG skids, gas cylinder manufacturing, LNG (Liquefied Natural Gas) plants, CNG (Compressed Natural Gas)/LNG trucks, LNG regasification /compression stations, and CNG filling stations.

“An estimate of over $27m will be generated by switching 50 per cent of kerosene and firewood users to LPG. Optimisation of flared gas could impact the country’s GDP by up to $1bn per year.”

He said the barriers to LPG growth in Nigeria include sub-optimal infrastructure, poor roads for transportation, significant gas processing infrastructure deficit and obsolete pipelines.

Others include limited berthing facilities and domestic equipment manufacturing, foreign exchange for import of LPG and related equipment as well as regulatory and policy frameworks.

Omuojine decried the lack of investment incentives, import bottlenecks, multiple agency interface for projects and importation.

He frowned at the challenges with the implementation of the Petroleum Industry Act, stressing that there was need for the full deregulation of Premium Motor Spirit, popularly called petrol, as well as the implementation of the gas policy.

The Executive Secretary, ARDA, Anibor Kragha, described LPG as the fastest-growing petroleum product in sub-Saharan Africa, as he noted that the per capita LPG consumption in the subregion was, however, the lowest in the world.

Kragha stated that Nigeria and other African nations and stakeholders must find sustainable ways to address the challenges, adding that although sub-Saharan Africa accounted for 14.4 per cent of the world’s population, it had less than one per cent of global LPG consumption.

“Finance and infrastructure remains key as many countries have little or no bulk handing facilities for LPG,” the ARDA scribe stated.

He, however, admitted that LPG consumption in Africa had more than doubled since 2010, as the consumption rate now hovered around 9.7 per cent annual growth rate over the past decade.

Stakeholders at the workshop stated that Nigeria had the largest proven gas reserves in Africa at over 209 trillion cubic feet, making it the 9th largest in the world, but imports 70 per cent of its LPG requirement.

Read Also:  Nigeria, Morocco Plan World’s Longest Offshore Gas Pipeline

It was also stated that Nigeria had the fastest growing LPG sector in the world with a projected LPG market size of $10bn, as the annual per capita consumption of LPG had risen from 1.8kg in 2015 to 5kg in 2021.

They stated that Nigeria’s domestic demand for LPG increased from just over 400,000MT in 2016 to 1.04 million MT in 2021, while domestic LPG storage capacity was put at over 60,000MT.

They also stated that the total African market size for LPG would exceed $210bn by 2028 and that the use of LPG would continue to grow faster than other fuel sectors as LPG would be available due to its abundance both in Nigeria and other parts of Africa.

shippingposition

Kindly like us on Facebook


Tags: Cooking Gas

Related Posts

Nigeria’s Daily Crude Oil Production Drops To 937,766 bpd In September

Nigeria’s Crude Oil Export Revenue Drops by 17% to $6.68 Billion in First Two Months of 2025

June 1, 2025
President Tinubu Signs 6 IMO Instruments Of Accession

FG Rallies Stakeholders to Accelerate Nigeria’s Gas Revolution, Signs Agreement with Ten Equity Partners

June 1, 2025
The Return of Standards Organisation of Nigeria to the ports

SON Raises Concern Over Influx Of Adulterated Lubricants, Engine Oil

June 1, 2025
Tensions Rise as Bayelsa Host Communities Threaten Shutdown Over Security Contracts

Tensions Rise as Bayelsa Host Communities Threaten Shutdown Over Security Contracts

June 1, 2025

Latest News

NPA Bags NASS PAC Transparency Award

NPA Bags NASS PAC Transparency Award

July 12, 2025

Nigeria Customs Says Claim Of Form ‘M’ Migration Charges False

CRFFN Showcases Reform Milestones, Dismisses Court Ruling Misinterpretation

NCMDLCA Faction Distances Self from Amiwero’s Court Action, Backs CRFFN on POF Collection

Customs Intercepts ₦9.2bn Worth of Fake Bedroom Booster, Others

Customs, NAFDAC Inaugurate Implementation Committee for 2024 MoU

Nigeria Customs Intercepts Container with Over 10,000 Donkey Genitals

Senate Hails Adeniyi’s Election as WCO Council Chair, Says It’s  a Major Win for Nigeria’s Global Trade Leadership

Oyetola Launches Door-to-Door’ Diplomacy for Nigeria’s IMO Council Bid

FG Urged To Link Warri-Itakpe Rail To Inland Ports, Road Networks

Red Sea Operation Rescues 4 More From Cargo Ship Sunk By Houthis

Shippers’ Council Set to Establish Border Information Centre at Idiroko, Bolster Trade Efficiency

kindly like our Facebook page

Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert
Health

Contraceptive Pills Can’t Cause Cervical Cancer – Expert

June 30, 2025

Mrs Roseline Akinlabi, Adolescent and Youth Sexual Reproductive Health Desk Officer, Osun Primary Healthcare Board, says contraceptive pills cannot cause...

ONIONS: The Good Old Healing Vegetable

KNOW YOUR BODY PARTS: The Liver

June 16, 2025
ONIONS: The Good Old Healing Vegetable

ONIONS: The Good Old Healing Vegetable

June 16, 2025
Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

Why Prostate Disorder Cases Are Increasing Among Nigerian Men – Experts

June 1, 2025
20m Nigerians Live With Mental Health Issues, Says WHO

20m Nigerians Live With Mental Health Issues, Says WHO

June 1, 2025
Health Facts You Didn’t Know

How Your Habit Affects Fertility

May 19, 2025
Fruits For Raining Season

Fruits For Raining Season

May 19, 2025
See Mental Illness Like Other Treatable Diseases – Says Suicide Survivor

Health Facts You Didn’t Know

May 19, 2025
Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

Alligator Pepper: Benefits, FAQ, Side Effects, & Warning

April 28, 2025
Water And Health: The Relationship That Helps Life

Water And Health: The Relationship That Helps Life

April 28, 2025

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition