The Petroleum Products Pricing Regulatory Agency (PPPRA) has lauded enabling environment created by Federal Government through its programmes and policies to attract investment into the Liquefied Petroleum Gas (LPG) value chain.
PPPRA listed government policies and programmes responsible for quantum of investments seen in gas industry as the National Gas Policy (NGP), Nigeria Gas Flarek Commercialisation Programme (NGFCP), National Gas Expansion Programme (NGEP) and Decade of Gas declaration.
A statement by its General Manager, Corporate Services, Mr Kimchi Apollo, on Sunday said Nigeria presently produces locally a major portion of the LPG consumed in the country.
The PPPRA report on LPG supplied in September indicates 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.
Apollo noted that in the month of September, PPPRA LPG data showed 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 Ltd.
The General Manager explained that 49,453.081MT was supplied into domestic market with 66.58 per cent 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.
“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 climate for the Gas industry to thrive,” he noted.
He further emphasised that government policies and programmes such as the NGP, NGFCP, NGEP and Decade of Gas declaration were responsible for quantum of investments seen currently in gas industry.
Some of these investments according to him 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, he said the waiver of import duties on LPG production equipment as well as the Zero VAT for locally produced LPG had indeed heightened the prospects of domestic investment in the sector.
In addition, he pointed out that a Pioneer Status Incentive for some categories of LPG Investments was also introduced.
He expressed PPPRA’s continuous commitment towards the development of Nigeria’s vast gas resources and strengthening the entire value chain. (NAN)