Published: 07 Jan 2019

The Nigerian federal government has set a target which aims at achieving a 40 per cent energy switch from the consumption of Premium Motor Spirit (petrol), Dual Purpose Kerosene (kerosene) and Automotive Gas Oil (diesel), to the use of Liquefied Petroleum Gas.

Under this arrangement, efforts are being intensified to promote the wider use of LPG in households, power generation, auto-gas and industrial applications. According to the Federal Ministry of Petroleum Resources (FMPR), government has initiated the LPG Expansion Programme in order to effectively drive the switch to LPG consumption across the country.

“The LPG Penetration Framework is designed to reduce the national energy consumption of PMS, DPK, AGO by achieving a 40 per cent fuel switch to LPG in 10 years. The programme will also promote the wider use of LPG in households, power generation, auto-gas and industrial applications towards the attainment of five million metric tonnes domestic utilisation and creation of an estimated 500,000 job opportunities nationwide in five years.”

The FMPR noted that overall, improvements in the standard and quality of living in rural communities were also expected for the programme. It said the LPG Penetration Programme along with the Nigeria Gas Flare Commercialisation Programme (NGFCP) were components of Nigeria’s intended nationally designed contributions under the Paris agreement for reducing annual greenhouse gas emissions by the year 2020.

Notably, the consumption of Liquefied Petroleum Gas, popularly known as cooking gas, in Nigeria, increased by 600 per cent in the past two years, which according to the Minister of State for Petroleum Resources, Ibe Kachikwu, is attributable to the well-articulated Nigerian Gas Policy. The Nigerian Gas Policy is a very comprehensive document that sets out the parameters for growth for gas, how local consumption needs are to be met, what sort of infrastructure is required and the various segments of business opportunities that exist. It was passed by the Federal Executive Council and it has been driving the gas sector.

Olayinka Alao

Firm: Renaissance Practice
Country: Nigeria

Practice Area: Energy & Natural Resources

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