Techno Oil Limited announced that it has established Nigeria’s first fully indigenous automated Liquefied Petroleum Gas (LPG) cylinder manufacturing plant.
The company, which is a leading integrated energy company with interests in oil and gas, energy, infrastructure, and manufacturing is situated in Kajola, Ajah Lagos State and has the capacity to produce more than five million LPG per year.
Recently, the Nigerian Government announced its intention to implement a new reform that forbids ownership of LPG cylinders. The government partnered with some manufacturers to give 600,000 cylinders to distributors on credit, to be repaid in 18 months.
The project, reputed to be the largest of its kind in West Africa, aims to end cylinder importation into Nigeria. Quite a number of the cylinders currently in circulation in the country are said to be either substandard, expired. As such, they may pose severe risks to consumers.
During the commissioning of the plant, the Vice President of Nigeria, Yemi Osinbajo said aside from the project’s ability to meet local demands, it could encourage export of the cylinders to other West African countries.
According to Osinbajo, “Techno Oil’s investment auspiciously converges with our administration’s efforts to speedily diversify our economy, especially through domestic and indigenous solutions.When we came into office in 2015, one of the issues we identified was the abysmally low domestic utilisation of Liquefied Petroleum Gas in Nigeria – a nine percent penetration rate nationwide, despite Nigeria’s domestic LPG production of three million metric tonnes per annum”.
The Vice President also noted that the Buhari administration planned to create about two million jobs in the LPG subsector while creating investment opportunities for people to explore.
The Executive Vice-Chairman of Techno Oil, Nkechi Obi pointed out that there is a shortage of cooking gas cylinders in Nigeria, putting the figure at just two million.
She reiterated Techno Oil’s resolve to tackle this predicament by producing a million high-quality cylinders in four months and break the barrier of acquiring cylinders at high costs.