NMDPRA Approves 500MT LPG Construction In Abuja

 NMDPRA Approves 500MT LPG Construction In Abuja

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has granted Noretek Energy approval to construct 500 Metric Tonnes (MT) of Liquefied Petroleum Gas (LPG) in Gwagwalada, Abuja.

The Authority said that the move would boost the much-talked-about efforts to ramp up gas penetration and utilisation in the nation’s capital and its environs and create employment for the people.

Speaking at the event, Farouk Ahmed, the Authority’s Chief Executive, said that the approval to construct was coming at a time when the optimisation of the nation’s massive gas resources was taking the front burner.

Ahmed, represented by Ogbugo Ukoha, the Executive Director of Distribution Systems, Storage and Retailing Infrastructure of the regulatory agency, said, “Nigeria has more than 209 TCF of gas. Not only that, the government has also designated gas as the transition fuel for Nigeria.

“But more important is that the president has given a fresh impetus to these optimisations in deregulating the PMs markets. But more importantly, we are prioritising the utilisation of gas. Two things: this will enable not just the supply to improve in Abuja. Generally speaking, Nigeria’s gas utilisation per capita is far below what you have, even in other African countries.

“Secondly, as you can imagine, this will provide employment opportunities. At 500 metric tonnes, a number of hands will be required to work in that space. So, in that sense, the authority is fast-tracking the regulatory process. We provide regulatory support to ensure that these milestones are met with the construction of every facility within this industry.”

He, however, said that there are other issues like the financial plans and others, which the project team at the NMDPRA was ready to collaborate with the energy firm to ensure that the project begins operations in full as soon as possible.

The CEO said that there were currently several such LPG plants which will be ready for inauguration in the near future, especially in Lagos, Port Harcourt and Abuja.

“Within the gas value chain, there are many derivatives, LNG, LPG, CNG, propane, and it’s in our best interest to have a full blast on all these derivatives because some can be deployed immediately for autogas; some will do better for cooking, while others will do better for powering engine. But it’s important to have a full bouquet of these so everybody can have options,” he said.

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