The Petroleum Products Pricing Regulatory Agency (PPPRA) has said that over 66 percent of the domestic gas supply for the month September 2021 was produced locally.
General Manager, Corporate Services, of the PPPRA, Mr. Kimchi Apollo, who made this known in a statement explained that Nigeria produces locally, a major portion of the LPG consumed in the country.
Appolo attributed the feat to the enabling environment created by the Federal Government through its programmes and policies to attract investment into the entire gas value chain.
The statement issued by the agency, titled; “report on LPG supplied in September 2021, it stated that out of the 76,578.986 metric tonnes (MT) of LPG supplied nationwide, 49,453.081MT was locally produced while 27,125.905MT was imported.”
It added that in the month of September 2021, PPPRA LPG data show that 49,453.081MT was supplied into the domestic market by Algasco, Stockgap, NIPCO, 11 plc, Prudent, Greenville Natural Gas, PNG Gas, NPDC and Ashtavinayak Hydrocarbon Limited with 66.58% of the supply sourced from the NLNG, whilst 27,125.905 MT was imported by Rainoil, Algasco and Prudent.
It is worthy to note that the quantity of LPG sourced locally rose from 38,040.457MT in August to 49,453.081MT in September, while importation reduced from 47,224.346MT to 27,125.905MT.
According to PPPRA, the marked improvement in local production reflects the success of President Muhammadu Buhari, and Minister of State for Petroleum Resources, Chief Timipre Sylva in providing the right enabling business environment for the Gas industry to thrive.
Government policies and programmes such as the National Gas Policy (NGP), Nigeria Gas Flarek Commercialisation Programme (NGFCP), National Gas Expansion Programme (NGEP) and the Decade of Gas declaration are responsible for the quantum of investments we see today in the gas industry.
PPPRA added that of these investments include the NPDC Oredo Integrated Gas Handling Facility, Kwale Hub Gas Processing Plants (PNG, Ashtavinayak Hydrocarbon) Greenville LNG, Rivers State and OSO/Bonny River Terminal project.
In terms of polices, the agency said the waiver of import duties on LPG production equipment as well as the Zero VAT for locally produced LPG have indeed heightened the prospects of domestic investment in the sector.
The agency added a Pioneer Status Incentive for some categories of LPG Investments was also introduced.
The PPPRA said it remains committed to the development of Nigeria’s vast gas resources and strengthening the entire value chain.
