JUST IN: NNPC, India Open Discussions On Distribution Of 20 Million Gas Cylinders To Nigerian Villages, Others

The Nigerian National Petroleum Company Ltd has begun discussion with India to improve
Liquefied Petroleum Gas (LPG) penetration in Africa’s biggest economy.

The bilateral relationship would help facilitate the distribution of 20 million gas cylinders across Nigeria over the next five years.

The Group Executive Director, Downstream of the NNPC, Engr. Adeyemi Adetunji, who represented the Group Chief Executive Officer of the NNPC Ltd, Mele Kyari said this at the WLPGA India/Nigeria LPG Summit 2022.

The event had as its theme, “Energising the Future: Leveraging the Indian Experience to Achieve Nigerian National LPG Aspirations.”

The ongoing summit in Abuja is part of the efforts of the government to drive LPG penetration in Nigeria.

Nigeria hopes to expand its auto gas usage as cars, including tricycles are expected to run on gas in coming years to ease energy cost as well as reduce carbon emission.

The NNPC Ltd is already playing its role to eliminate the use of less clean fuels like firewood and kerosene for cooking including facilitating penetrating LPG in rural communities.

Nigeria, the second largest LPG producer in Africa hopes to lift millions out of poverty through the use of the LPG.

In 2022 consumption reached 1.7 million tones, but the pricing has increased over the years which is also a major concern for the NNPC Ltd.

The GCEO said, “The NNPC Ltd is fully aligned with the Federal Government of Nigeria’s National Gas Expansion Programe and the FG National LPG Expansion Plan Initiative and has a fully pledged business unit established basically to commercialise the LPG penetration.

“Accordingly, NNPC is positioned to deploy 740 LPG micro distribution centres, 37 filing plants in its 541 gas stations within the next three years.

“NNPC is also collaborating with the office of the Vice President and other stakeholders for the establishment of gas funding company Ltd for injection of 20 million cylinders in the next five years under the marketer cylinder owned model.

“It is expected this summit will discuss the Nigerian experience, the Indian example covering LPG handling, pricing and financial support to enhance LPG affordability among the poor, communication strategies ICT and infrastructure as well as collaboration of cylinder management and manufacturing.”

He said the summit is expected to submit a report detailing gaps identified and recommend on best practice from the Indian experience.

According to the GCEO, the recommendation would help the rapid penetration national LPG penetration in Nigeria.

Indian Oil chairman Shrikant Madhav Vaidya, in his remark said part of India’s target is to facilitate the World LPG Associations programme, ‘cooking for life’ which target 1 billion people using LPG as cooking gas in the next 20 years.

“I’m sure that presence of officials from NNPC, Indian Oil and World LPG association at the summit will enrich the deliberation bordering global LPG penetration,” Vaidya said.

Vaidya, who is also the Chairman of the WLPGA noted that LPG is a transformational fuel committed to lifting millions out of poverty.

According to him, learning from the Indian experience would eliminate the use of firewood, coal and kerosene by millions of Nigerians for cooking.

He quoted the WHO as saying “smoking inhaled by women from unclean fuel is equivalent to smoking 400 sticks of cigarettes in an hour. Thus, ruining their health. Moreover, by releasing LPG connections directly into their homes, it empowers rural women.”

He added, “Driven by the inspiring stewardship of the NNPC, the Nigerian energy market is also one of the impressive growth trajectories. Nigeria clocked an impressive 1.7m tones of LPG consumption in 2021 and continues to grow steadily.

“We are at a reflection point in this journey and understanding and implementing the learnings from India can have a transformative effect on the Nigeria gold story.”