DPR Reads Riot Act To Illegal LPG Marketers

The Department of Petroleum Resources (DPR), regulator of oil and gas industry has observed that many liquefied petroleum gas (LPG) marketers operate without valid licenses and vowed to sanction those who fail to comply with relevant laws on operational safety.

Also, the agency has projected that the annual LPG consumption will rise to about 200,000 metric tonnes (mt) in 2013.

Speaking at the 2013 Annual LPG Stakeholders' Forum in Lagos, Head, Gas, DPR, Mr. Oliver Okparaojiako, said the regulatory agency, will soon embark on facility audit of licensed plants nationwide to ensure compliance with statutory provisions on operational safety. Okparaojiako, who was represented by an official at the agency, Mr. Christian Amaechi, noted many marketers contravened the law by storing and selling LPG without valid licences.

He warned: "Henceforth, all retail outlets for LPG must be licensed. We want to use this medium to direct all LPG plant operators to ensure that resell points have valid licenses. Our inspectors have been directed to ensure compliance.

"Plant operators must be conversant with all safety need of LPG plant operations," he stated. Okparaojiako projected the annual consumption of LPG would rise above 200,000 metric tonnes in 2013, basing the growth on recent efforts of government in increasing consumption.

Speaking in the same vein, Operations Controller (Lagos Zonal Office) at the DPR, Mr. Gbenga Koku, cautioned plant owners against selling the product to unlicensed distributors and bulk end users, stating violators would be severely sanctioned.

He said: "Some operators have not been renewing their operating licence. DPR staff will start constant visits to plants to enforce compliance. In as much as we encourage the proliferation of LPG plants, prospective plant owners must follow due process to obtain all requisite approvals before the commencement of any construction or installation."

Koku however explained approval should be granted before the commencement of any upgrade or modification of plant. "The department will embark on operational facility audit of licensed plants starting from next month to ensure strict compliance to statutory guidelines and standards," he said.

He also advised all products reception point should have a functional laboratory, adding those currently without laboratories should sign a memorandum of understanding with third party laboratories for product re-certification.

The operations controller stated the agency had received a good number of applications from prospective plant owners seeking Approval to Construct (ATC). Similarly, he said existing filling station owners had been applying to install LPG skid or auto gas within their existing petroleum service stations. He said the increasing number of applications was an indication that the LPG was becoming the preferred fuel source for Nigerian homes.