The Nigerian National Petroleum Corporation (NNPC) announced that it has plans to launch the largest Liquefied Petroleum Gas (Cooking Gas) and Propane Storage and dispensing facility in Oredo, Benin City, Edo State.
NNPC’s spokesman, Mr. Ndu Ughamadu, who revealed the news, said the facility is being designed to serve as an extension of the Integrated Gas Handling Facility (IGHF). He said NNPC and its subsidiary, the Nigerian Petroleum Development Company Ltd (NPDC), would unveil the facility as part of its efforts to fast-track the consumption of cooking gas in Nigeria.
According to Ughamadu, “the facility, which is an extension of the Integrated Gas Handling Facility (IGHF) plant, has the capacity to dispense 330 tonnes of propane daily, in addition to the 100 million standard cubic feet of gas per day (MMSCFG/D) and 260 Barrels per day condensate from the IGHF plant”.
The Managing Director of NPDC, Mr. Yusuf Matashi, reportedly described the IGHF as a game changer of the national oil company. He also stressed that commissioning the facilities would constitute a source of huge revenue generation for the country.
Matashi noted that the facility was centrally positioned to supply Gas to Lagos, South-South; South-East and to the North in order to grow its consumption across the country.
He revealed that NPDC is the single largest gas supplier to the Nigerian market, and it is responsible for supplying about 90 percent of gas required to drive power generation in Nigeria.
Matashi said “currently NPDC is the single largest supplier of gas to the domestic market with about 90 percent of gas supply targeted at power generation to drive the nation’s economy positively. We are paying greater focus on our 100 percent assets production. NPDC assets will deliver a lot in terms of meeting its (crude oil and gas) volume targets.
He added that “we currently contribute 10 percent to daily national production and by end of 2019, the company is looking at 15 percent contribution to daily national production”.
Matashi disclosed that the company has an oil reserve base of 3.6 billion barrels and gas reserve of 15 trillion cubic feet from its involvement in 29 concessions, 22 Oil Mining Leases (OMLs) and 7 Oil Prospecting Licenses (OPLs).
Commenting on the company’s outlook, he noted that production outlook for 2019/2020 was on the bright side. He also added that the company was aggressively pursuing its drilling and field development programmes as approved by the management of NNPC.
The Managing Director stressed that the company maintained cordial relations with regulatory agencies, such as the Department of Petroleum Resources (DPR) and had maintained its remittance of royalties and Petroleum Profit Tax to the Federal Inland Revenue Service (FIRS).
The launch of the gas plant may trigger a reduction in the average prices for refilling cooking gas. Similarly, since the NPDC produces about 90 percent of gas driving the power sector, this is expected to improve power generation in the country.