FG approves autogas plants, diesel now N1k/litre – moneyamebo

Date:

  • The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) disclosed it has issued licenses to autogas plants
  • The autogas plants will be completed next year
  • NMDPRA disclosed that Nigeria will gradually shift from petrol to gas

The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday, September 19, 2023, disclosed that it had approved the construction of a gas plant. This is expected to imprve the availability of gas to motorists in Nigeria.

NMDPRA explained that the gas projects would be compledted in early 2024.

CEO of NMDPRA Farouk Ahmed speaks on the licensing of autogas plants. Credit: Vithun Khamsong
Source: Getty Images

Autogas plants to be rolled out in 2024

According to the Chief Executive Officer of NMDPRA, Farouk Ahmed, harnessing the 209 trillion cubic feet of available natural gas in Nigeria remains critical for energy transition and industrialisation.

 
 

The Guardian reports that Ahmed said the new approval would see an additional 500 metric tons of LPG storage depot open in the Gwgwalada area of Abuja.

He said this is the right time to leverage Nigeria’s vast gas resources.

Per the agency’s CEO, the country has more than 209 TCF of gas, and the government has designated the product as a transition to cleaner energy, especially after petrol subsidy removal.

The NMDPRA boss said Nigeria’s gas utilisation per capita is below that of other African countries.

Oil marketer to build 7,000 gas stations for cheap fuel

He stated that the new gas plants would provide jobs for Nigerians as the agency would guide investors through the process and provide support to enable players to meet their objectives in the construction process.

The Managing Director of Noretek Energy Limited, Edward Traore, explained that the new plant was critical to the company’s more extensive strategy.

The recent comment comes as petrol marketers say they are rolling out about 7,000 autogas stations with nearly 500,000 trucks running on gas.

The Nigerian government has stated its commitment to pivot away from petrol to gas following subsidy removal from petrol.

President Bola Tinubu has asked relevant agencies to begin rolling out cheap and alternative fuel to cushion the effect of subsidy removal.

“”We’re 90% ready””: Petrol marketers reveal plans to roll out cheap fuel at N100 per litre

Moneyamebo hopes the roll out of the autogas stations will bring succour to motorists as cheaper fuel will be available.

The national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okoronkwo, disclosed that the association is 90% ready to roll out Compressed Natural Gas (CNG) as an alternative fuel, which would sell between N100 to N110 per litre before the end of June.

He stated this during an interview on Channels Television and stressed that CNG would serve as an alternative to petrol.

 

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