NMDPRA Grants Approval To Novertek For Construction Of 500MT LPG Depot

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has signed two major deals on Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) with two investors for the Construct (ATC) 500MT LPG Depot and the provision CNG.

The NMDPRA announced the deal on its social media handle on Tuesday.

The development is coming a few weeks after President Bola Tinubu approved the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI) as a substitute for petrol.

Since Tinubu removed subsidy on fuel in May, the drive for the adoption of CNG-driven cars and the use of LPG has been on the rise.

Announcing the deal, the Authority said it has granted “Approval to Construct (ATC) 500MT LPG Depot in the Federal Capital Territory to Novertek Energy Limited.

“The Midstream & Downstream Gas Infrastructure Fund (MDGIF) of the Authority signed an MoU with Femadec Energy on the provision of Compressed Natural Gas (CNG).

“The Presidential Initiative on Compressed Natural Gas (PICNG) which is the driver for the Federal Government’s ‘Decade of Gas’ initiative was also present at the event.”

The PCNGI is targeted at revolutionizing the transportation landscape in the country, targeting over 11,500 new CNG-enabled vehicles and 55,000 CNG conversion kits for existing PMS-dependent vehicles, while simultaneously bolstering in-country manufacturing, local assembly and expansive job creation in line with the presidential directive.

In July, Tinubu said he has made provision to invest N100 billion between July and March 2024 for the purchase of 3,000 units of 20-seater buses running on compressed natural gas (CNG).

Meanwhile, the Nigerian National Petroleum Company Ltd sealed a deal with NIPCO Gas Limited to develop Compressed Natural Gas stations across the country.