During the Liquefied Petroleum Gas (LPG) conference held in Abuja, the clarion call for the comprehensive adoption of Autogas resonated among major stakeholders. Their consensus was grounded in the belief that Autogas possesses the potential to serve as a catalyst for the transformation of Nigeria’s struggling economy, with the anticipated ability to contribute significantly, potentially reaching a substantial turnover of about N2 trillion. This pivotal discussion unfolded against the backdrop of the conference’s theme, which was aptly titled, “LPG- Saving Nigeria from the Brink: Gas for Vehicles, Generators, and Agriculture.”
The imperative role of LPG in Nigeria’s evolving energy landscape took center stage during these deliberations, accentuated by the notable 2.167 per cent growth in LPG utilization observed between 2006 and 2022. This growth trajectory was a crucial point of emphasis for Felix Ekundayo, the President of the Nigeria Liquefied Petroleum Gas Association (NLPGA). In his inaugural address, he not only highlighted the impressive growth but also projected a continuous expansion of the industry. He attributed this positive outlook to the Federal Government’s renewed emphasis on gas, positing that the sector could substantially contribute to a turnover of N2 trillion.
A key focal point of Ekundayo’s address was the identification of Autogas, signifying any gas suitable for powering vehicles or internal combustion engines. He enumerated four critical areas where Autogas currently plays an indispensable role, urging the government to concentrate on power, industrial, autogas, and domestic sectors for the effective utilization of gas.
However, amidst the optimism, Ekundayo drew attention to what he referred to as Nigeria’s paradox in the gas sector. He underscored the need for robust policies across the entire gas value chain and emphasized the urgency of addressing prevailing challenges within the gas industry. The goal, he asserted, is to unlock the full potential of the gas sector, thereby reaping economic and societal benefits of autogas.
Echoing similar sentiments, Ekperipe Ekpo, the Minister of State (Gas) Petroleum Resources, reiterated the government’s commitment to urgently addressing the energy transition gap. He acknowledged and commended the NLPGA’s efforts in contributing to the remarkable growth witnessed in the LPG sector. Notably, this growth translated into the creation of over 150,000 jobs and a substantial increase in LPG consumption, soaring from 60,000 tonnes in 2007 to over 1.3 million tonnes in 2021.
Michael Oluwagbemi, Chief Executive of the Presidential CNG Initiative, lent his voice to the discussion by emphasizing the imperative for Nigeria to embrace cleaner energy sources. He advocated for strategic partnerships and a transition to various fuels, including Liquified Natural Gas (LNG). In alignment with government initiatives, he expressed support for the National Transportation Mass Transit Policy, which mandates all commercial vehicles to run on gas by 2024.
Akachukwu Nwokedi, the President of the Nigeria Gas Association (NGA), further emphasized the pivotal role of Autogas as a key contributor to a greener and more decarbonized transportation sector. He highlighted the instrumental role of gas in achieving “net-zero” by 2060, aligning with global environmental sustainability goals.
Drawing from international experiences, gas development expert Sekhar Vajalla underscored the significance of government intervention and the necessity of regulatory frameworks for licensing and certifications. He specifically pointed out the absence of pricing conclusions, advocating for increased competition and prioritizing the domestic autogas market
Addressing regulatory hurdles, Abel Igheghe, Technical Adviser, Downstream to the Minister of State for Petroleum Resources (Gas), expressed the government’s unwavering commitment to transforming Nigeria into a gas-based economy. He acknowledged the need for a comprehensive review of guidelines to create a more enabling environment for stakeholders, thereby fostering sustained growth in the gas sector.
Tolu Longe, Head Process Control at the Nigeria Liquefied Natural Gas Limited (NLNG), provided insights into the organization’s role in the pursuit of achieving 5 million tonnes. She revealed that 100 per cent of NLNG’s produced LPG is now infused directly into the domestic market, supplying approximately 40 per cent of Nigeria’s total LPG consumption. Furthermore, she outlined plans to boost new volumes, with a capacity to inject 650,000 to 700,000 tonnes of LPG into the domestic market in the near future. The NLNG Train 7 Project, she disclosed, aims to increase capacity by about 35 per cent, translating to approximately 1 million tonnes per annum.
Autogas investment
Joy Shaiyen, the Coordinator of the Women in LPG Global Network, Nigeria Chapter, delved into a sixteen-year trajectory of LPG in Nigeria. She specifically focused on the domestic interventions by NLNG, highlighting the impact of subsidy removal on kerosene. This removal led to a decline in imports and a subsequent shift in favor of LPG. Shaiyen recommended the active involvement of rural women in the transition to LPG, advocating for subsidizing cylinder acquisition for rural communities. She proposed utilizing the Midstream and Downstream Infrastructure Fund for conversion funding and emphasized the importance of ensuring a minimum percentage of women’s involvement in intervention programs for the sustainable growth of the LPG sector.
