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Gas

Kaduna State Welcomes first liquefied gas station in Kaduna

by Ikem Emmanuel October 25, 2023

written by Ikem Emmanuel 2 minutes read

Kaduna State Governor, Senator Uba Sani, has officially opened the inaugural Liquefied Compressed Natural Gas (L-CNG) station established by Greenville LNG in Kakau, Kaduna State. This new facility is set to not only transform the state but also provide employment opportunities for the local youth, thereby giving a significant boost to the state’s economy.

The governor emphasized his administration’s dedication to making Kaduna a prominent business hub, commending Greenville’s management for revitalizing the local business environment and generating job prospects for residents. He highlighted the crucial importance of the L-CNG gas hub as a power source for micro, small, and medium-sized businesses and industries in the state. This development will help address the state’s urgent need for energy security.

Governor Sani noted that in a time marked by volatile fuel prices and global currency fluctuations, Greenville LNG’s L-CNG solution is warmly welcomed in Kaduna State. It not only promises economic growth but also the revival of various Kaduna-based industries, including textiles, machinery, steel, and aluminum, as well as the automotive and oil and gas sectors.

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He further explained that energy is a vital driver of business, and with the introduction of this L-CNG facility, small businesses will thrive. Moreover, it will create job opportunities for the youth, enabling them not only to find employment but also to unleash their creativity and innovation.

The governor expressed the hope that Greenville LNG would consider establishing more gas hubs in Kaduna. He assured the company of the state government’s full support to ensure the success of this groundbreaking initiative, anticipating the positive impact it will bring to both Kaduna State and the entire nation.

October 25, 2023

EU Seeks Stronger Ties with Nigeria’s LNG Industry to Address Gas Supply Gap

by Ikem Emmanuel October 23, 2023

written by Ikem Emmanuel 3 minutes read

The European Union (EU) is keen on strengthening its diplomatic ties with reliable Liquefied Natural Gas (LNG) partners like Nigeria to address the gas supply gap caused by the Russia-Ukraine conflict. Ms. Kadri Simson, the EU’s Commissioner for Energy in Nigeria, emphasized the need for short-term collaboration during her visit to the Nigeria Liquefied Natural Gas (NLNG) Limited’s facility on Bonny Island, Rivers State.

Simson highlighted that Nigeria exported 9.4 billion cubic meters (bcm) of LNG to Europe in 2022, illustrating the country’s role as a dependable LNG supplier. She stated that there is potential to enhance Nigeria’s gas supply to Europe in the coming years.

She mentioned, “EU is accelerating its energy transition, but we also have a need to reinforce our ties with reliable LNG partners like Nigeria in the short-term horizon. This helps us to bridge part of the gap left by former Russian imports while we gradually transition away from fossil fuels. Nigeria has proven to be a reliable partner, and last year, 9.4 bcm of LNG was exported from Nigeria to the E.U. But there is potential to do more – in particular between now and 2027.”

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The Managing Director and Chief Executive Officer of NLNG, Dr. Philip Mshelbila, expressed that Nigeria’s Decade of Gas Policy would contribute to global energy security. He emphasized that the ambitious plan aimed to harness Nigeria’s abundant gas resources and ensure a reliable global supply of gas as a clean energy source.

Mshelbila outlined that addressing the challenges in the gas sector required collective efforts, with stakeholders’ determination and prompt action. He stressed that Nigeria has significant potential as the sixth nation with the largest natural gas reserves and emphasized the importance of making the gas sector work.

He noted that investment in Nigeria’s gas sector would have a significant impact on the global gas and LNG supply landscape, providing reliable and environmentally friendly energy during the ongoing energy transition.

Mshelbila also informed the EU delegation that the ongoing Train 7 project at NLNG was approximately 50% complete and would increase NLNG’s production capacity to 30 million Tonnes Per Annum (MTPA) once finished. Additionally, NLNG is planning to decarbonize and is considering further expansion with more trains to advance the gas sector.

The EU delegation was received by Mshelbila, alongside NLNG’s management staff.

October 23, 2023

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Nigerian Gas Association Advocates for Compressed Natural Gas (CNG) as a Cheaper Alternative to Petrol

by Ikem Emmanuel October 14, 2023

written by Ikem Emmanuel 2 minutes read

The Nigerian Gas Association (NGA) is championing the adoption of Compressed Natural Gas (CNG) as a viable and cost-effective alternative to Premium Motor Spirit (PMS), commonly known as petrol. According to the NGA, CNG is not only more environmentally friendly but also comes at a significant cost advantage, being approximately 15% cheaper than petrol.

During a media briefing held in Lagos, Akachukwu Nwokedi, the President of the Nigerian Gas Association, emphasized the importance of making gas more affordable to the Nigerian population. He stated that Nigeria possesses abundant gas resources, which, if harnessed efficiently, can drive economic growth.

The call for adopting CNG comes as petrol prices in Nigeria have experienced significant fluctuations, with prices surging from around N185 per liter to nearly N600 per liter in Lagos and its environs, and even exceeding N700 per liter in some northern regions.

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Nwokedi also stressed the need for a comprehensive review of the Petroleum Industry Act (PIA). Such a review, he explained, would help address various issues, including multiple taxation, payment for gas and associated fees in foreign currencies (dollars instead of the national currency, naira), fiscal incentives, and other regulatory concerns.

The NGA’s advocacy for CNG as a more affordable and sustainable fuel source aligns with global efforts to reduce reliance on fossil fuels and promote cleaner energy alternatives. CNG, being a cleaner-burning fuel, offers cost savings and contributes to reduced carbon emissions and a more sustainable energy future for Nigeria.

October 14, 2023

UPDATE: Gas Retailers Hint On Further Price Hike As Nigerians Groan

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Cooking Gas Prices Could Soar to N18,000 by December, Warn Gas Retailers

by Ikem Emmanuel September 18, 2023

written by Ikem Emmanuel 2 minutes read

Gas retailers in Nigeria are sounding the alarm, warning that the price of a 12.5kg cooking gas cylinder could reach as high as N18,000 by December if the Federal Government does not intervene and curb the activities of terminal owners. The President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo, expressed concerns over the skyrocketing prices of liquefied petroleum gas (LPG), commonly known as cooking gas, driven by a sudden increase in costs at gas terminals.

Oladapo revealed that prices at gas terminals have surged dramatically. Previously, a 20 metric ton container of gas sold for between N9 million to N10 million, but it has now spiked to N14 million per 20 metric tons. This unjustified price surge is a major cause for concern among gas retailers who fear that if left unchecked, the cost of a 12.5kg cooking gas cylinder could reach N18,000 by December.

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Terminal Owners and Foreign Exchange:

According to Oladapo, terminal owners are using the excuse of high foreign exchange rates to justify these price hikes, which are directly impacting the masses. He emphasized that there is no valid justification for such steep increases, especially considering that the Nigerian Liquefied Natural Gas Limited (NLNG) continues to supply the market.

Oladapo explained that the Nigerian National Petroleum Corporation Limited (NNPCL) currently acquires 59 percent of the gas produced by NLNG. While NLNG has also raised its prices from N6 million to N8 million, NNPCL and terminal owners have further increased prices to N14 million. This domino effect is causing gas prices to surge rapidly.

Impact on the Masses:

The consequence of these price hikes is that many ordinary citizens will struggle to afford cooking gas. Oladapo highlighted the increasing reliance on firewood and charcoal due to the prohibitive cost of gas. This situation directly contradicts promises made by certain stakeholders to collaborate with the government in improving the lives of the people through initiatives like the donation of palliative.

While gas terminal owners attributed the price hikes to forex challenges and fluctuations in the international crude oil market, it remains a contentious issue with gas retailers. Some retailers dispute the claimed prices, emphasizing the importance of transparency in the gas supply chain.

The steep rise in cooking gas prices in Nigeria is a cause for concern, particularly for the average consumer. As gas retailers voice their worries, the need for government intervention and industry transparency becomes evident. The impact of these price increases on daily life and household budgets underscores the urgency of addressing the situation to ensure that essential commodities remain accessible to all Nigerians.

September 18, 2023

Panic As Tanker Spills Gas On Anambra Road

by Echezona obinna August 10, 2022

written by Echezona obinna 2 minutes read

A tanker carrying cooking gas leaked its contents onto the Onitsha-Awka Road near the New Tarzan neighborhood in Nkpor, Anambra State, causing chaos.

Although the tanker’s registration number could not be seen, it bears the following inscription: (Takl-183).

The construction, which is said to have begun around 10 am, resulted in significant gridlock on the already congested road because the area was cordoned off and cars were not allowed to get any closer in order to prevent a fire outbreak.

Vehicles going in and out of Onitsha that were caught up around the area stood on standstill for several hours while men of the fire service were on standby to forestall any fire incident.

Commuters and passengers going in and out of Onitsha alighted from vehicles and started trekking away from the scene of the incident.

The development caused serious chaotic traffic situation as motorists were advised to use alternative routes, even as the routes became almost impassable.

The Anambra State Sector Commander, Federal Road Safety Corps, Adeoye Irelewuyi, while confirming the incident in a statement, said, “Motorists are advised to use alternative routes from Awka, enter the road at Nkwelle Junction to burst out at 33 to GRA or Nkpor to burst out at Boromeo roundabout and to Onitsha.”

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The men of the FRSC personnel from the RS5.3 Nteje Unit Command, who visited the scene said the road was completely blocked preventing vehicular movement from both lanes to avoid sudden fire out break.

“The incident happened at a location called ‘Sister’ which is between the Building Materials and Tarzan Junction where our traffic control personnel are controlling traffic and also observing the suitation.

“The driver of the tanker was carrying cooking gas which started leaking and decided to park the truck at that location.

“Meanwhile, the gas vapour is still leaking as of this time, but the fire service personnel are also on the ground neutralising the area.

“Vehicles other than tankers and trailers diverted from toll gate drove against traffic to the Building Material Junction towards Ogbunike to Old Road,” the FRSC officials said.

August 10, 2022

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FG And Operators Look At Potential Gas Resources In Enugu

by Echezona obinna June 24, 2022

written by Echezona obinna 4 minutes read

Following the fire event that lasted for nearly three weeks from a gas reservoir in the institution, the Federal Government, specialists, and operators in the oil sector are looking into the possibilities of gas deposits in Enugu State, particularly around the area of Caritas University.

The Nigerian Upstream Petroleum Regulatory Commission, an agency of the Federal Government, said that the fire from the gas reservoir at Caritas abruptly ended on its own. The government also declared that it had started a survey of hydrocarbon deposits throughout the nation.

The fire at the reservoir erupted on May 22, 2022, after workers who were drilling a borehole in the area noticed a gas leak from the site, which was discovered not to have erupted from a gas pipeline.

The Chief Executive Officer, NUPRC, Gbenga Komolafe, told journalists that investigations were ongoing at the site to ascertain the level of deposits in the reservoir.

He also stated that other states in Nigeria were being surveyed for hydrocarbon deposits as well, adding that this was being done by the Federal Government through the commission, its partner agencies and experts.

Responding to a question on whether investigations were ongoing to determine the country’s hydrocarbon deposits, Komolafe, who was represented by the Owerri Zonal Coordinator, NUPRC, Enorense Amadasu, said, “Yes, that is presently being done.

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“The whole of Niger Delta has been covered by survey, some parts of the North-East, North-Central, North-West and also parts of the Anambra Basin, among others.

“The surveys are still going on and even from this (gas reservoir fire) result the commission is putting mechanisms in place to work with other stakeholders to see how to acquire seismic data that will further enable us to know exactly what kind of hydrocarbon that is in this part of the country.”

Speaking to concerns that the gas at Caritas might have erupted from a broken or vandalised pipeline, the NUPRC boss explained that various findings by stakeholders proved otherwise.

Komolafe said, “When this incident happened, the first thing that was done was to investigate whether any right-of-way was around that region, or whether if there was any pipeline carrying gas in the area.

“And, of course, it was established that there was no pipeline there. So it is very clear that the gas is not from any pipeline that is transporting gas.”

The Deputy Vice Chancellor, Caritas University, Prof. Michael Orji, noted about 24 companies and organisations worked together in a bid to put out fire, but could not.

He, however, stated that the partners had agreed to support the government in carrying out further investigations on the site and across the state where necessary.

Reacting to the development, an energy law expert, Prof. Ayoade Adedayo, said thorough investigation should be carried out at the site of the gas leak.

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He said, “If there is no gas pipeline there and you have a gas leak then there is a natural gas reservoir under the ground there. The government should send in experts to survey that land and see the extent of the reservoir.

“It should try and determine how much of gas is there and this requires seismic studies. However, this could be a natural phenomenon that happens at times in other parts of the world.

Adedayo further called on the university and neighbouring communities to be careful of the site since the actual nature of the gas field had yet to be determined.

“The implication is that if we don’t do the necessary assessment of the situation and there is a more damaging fire, it could cause destruction to lives and properties,” the energy expert stated.

June 24, 2022

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88 Percent Increase In Kerosene And Gas Costs In A Year-NBS

by Echezona obinna June 23, 2022

written by Echezona obinna 3 minutes read

Kerosene and Liquefied Petroleum Gas, sometimes known as cooking gas, are the two main cooking fuels that had an 88 percent price increase in just one year.

The price of kerosene increased by 86.94% in a year, according to a recent report by the National Bureau of Statistics titled “National Household Kerosene Price Watch.”

According to the research, customers paid an average retail price per liter of household kerosene (HHK) in May 2022 that climbed by 15.21% month over month from N589.82 in April 2022 to N679.54 in May 2022.

The state profile analysis showed that the highest average price per litre in May 2022 was recorded in Enugu with N868.75, followed by Ebonyi with N861.11 and Imo with N801.67. On the other hand, the lowest price was recorded in Bayelsa with N558.06, followed by Yobe with N601.39 and Nasarawa with N603.33.

In addition, the South-East recorded the highest average retail price per litre of household kerosene with N773.09, followed by the South-West with N738.19 and the North-Central with N668.78, while the North-East recorded the lowest with N632.06.

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Also, in a separate report titled “Liquefied Petroleum Gas (Cooking gas) Price Watch,” the NBS said the average retail price for cooking gas increased by 89.28 percent from N2071.69 in May 2021.
According to the report, the average retail price per litre of Household Kerosene paid by consumers in May 2022 increased by 15.21 per cent on a month-on-month basis from N589.82 in April 2022 to N679.54 in May 2022.

Based on state profile analysis, the highest average price for refilling a 5kg Cylinder of Liquefied Petroleum Gas (Cooking Gas) was recorded in Gombe with N4366.67, followed by Bayelsa with N4325.00 and Adamawa with N4250.00. On the other hand, Yobe recorded the lowest average price with N3200.00; this was followed by Ogun and Ondo with N3450.00 and N3480.77 respectively.

In addition, prices analysed by zones show that the average retail price for refilling a 5kg cylinder of cooking gas was highest in the South -East with N 4094.39 followed by the North-Central with N3989.98 and South-South with N3977.72, while the South West recorded the lowest average retail price of N3719.53.

When aggregated, both products hit an 88.11 per cent average, based on the numbers for the past 12 months.

An energy expert, Bala Zakka, while speaking in an exclusive chat with our correspondent, attributed the sharp increase in the price of the products to Nigeria’s continued inability to refine petroleum products for local consumption.

June 23, 2022

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World Bank: States Will Lose N19 Billion In 2022 From Oil And Gas Income

by Echezona obinna June 22, 2022

written by Echezona obinna 4 minutes read

According to the World Bank, Nigerian states are anticipated to lose N18.8 billion in oil and gas revenues in 2022 as budgetary pressures for the states grow as a result of poor tax collection at the federal level.

This was stated by the Washington-based bank in its paper entitled “The Continuing Urgency of Business Unusual” in its Nigeria Development Update.

According to the lending bank, the declining revenue from the federation level had put many states in a precarious fiscal position.

The bank warned that many states would be unable to meet up with their expenditures, adding that there was an increase in debt servicing expenditures of States.

The report read in part, “With net oil and gas revenues stagnating, most states will not be able to achieve their intended levels of expenditures in 2022.

“In addition, debt servicing expenditures at the state level are also mounting due to a decline in gross statutory account revenue transfers from the federation account allocation committee, which comprises oil and non-value added tax, non-oil revenues.”

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The bank further said that the expected higher VAT collection or improvements in independently generated revenues would not compensate for the lower transfers from the Federation Accounts Allocation Committee in 2022.

The financial institution also warned that there would be a 2.7 per cent decline in FAAC transfers in 2022 when compared to 2021, adding that this decline would push states to borrow more and slash discretionary expenditure.

“Stagnating net oil revenues will significantly affect the fiscal situation at the state level. State governments are projected to collectively receive 2.7 per cent fewer revenues than in 2021, as federal transfers are estimated to decline by 10 per cent against 2020 levels.

“Lower transfers will cause state governments to incur debt or drastically slash discretionary expenditure. Although states receive the majority of VAT revenues, VAT increases would not make up for the loss of net oil revenues.
“As a result, in 2022, the average state in Nigeria will lose N18.8bn in oil and gas revenues, while optimistic projections place average gains from VAT and the electronic money transfer Levy at N7.1bn per state, and average increases in each state’s independent revenues at N6.7bn. As a result, the average state can expect to lose N5bn in revenue in 2022,” the report stated.

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ANAEDOONLINE reported that the Nigerian National Petroleum Company Limited might deduct over N1tn in the next six months from the Federation Accounts Allocation Committee, following the decision of the Federal Government to continue subsidising Premium Motor Spirit, popularly called petrol.

Figures obtained from the oil firm on its subsidy deductions in 2021 indicated that the amount deducted monthly from FAAC by the NNPC was higher during the periods of higher crude oil prices.

This was also confirmed by economists, who explained that the higher the international price of crude oil, the higher the amount to be deducted by the NNPC from FAAC.

“Of course, the NNPC will spend more on subsidies this year because crude oil price has been increasing and the higher the price of crude, the higher the amount to be spent on subsidy,” the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said.

He added, “In fact, about N2.5tn might be spent on subsidy this year, meaning that about half of that amount could be spent in six months and this means hard times for states because the funds will be deducted from FAAC as usual.

“Some states would struggle to pay salaries, especially states that are heavily dependent on federal allocation. Some may have to lay off some of their work force. Many will struggle to meet their financial obligations as sub-nationals.”

A political economist and former presidential candidate, Prof Pat Utomi, urged states to create an environment for wealth creation rather than depend solely on the federal allocation.

He said, “States must focus more on creating the environment for wealth creation. If you go back to the late 50s and early 60s, most of the developments that took place in Nigeria are from the subnational governments. They collected the revenues, and send 50 per cent of it to the centre but the military ruined all of that.

June 22, 2022

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No More Ownership Of Cylinders By Gas Users – FG

by AnaedoOnline May 22, 2019

written by AnaedoOnline 1 minutes read

No More Ownership Of Cylinders By Gas Users – FG

The Federal Government, Tuesday, said it was coming up with a policy that would remove the ownership of Liquefied Petroleum Gas, LPG, cylinders from consumers.

Speaking at a stakeholders’ forum on LPG penetration in Abuja, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said the policy would require that the ownership of the cylinders rests strictly with the dealers and distributors, adding that this was part of strategy to deepen the penetration of LPG, also known as cooking gas and address issues of safety.

Kachikwu added that the Federal Government had reached an agreement with two original cylinder manufacturers to deliver 600,000 cylinders to LPG distributors on credit, with a pre-payment period of 18 months.

He stated that the Federal Government would in the next couple of days commence the clampdown of illegal roadside LPG dealers, while he directed all skid operators of LPG to immediately convert their outlets to micro distribution centers before the enforcement begins.

May 22, 2019