Local demand of CLPG rises to 1,064,660mt in 2022
The Minister of State for Petroleum Resources, Timipre Sylva has said that domestic consumption of Compressed Liquified Petroleum Gas (CLPG) rose to 1,064,660 MT.
The Minister, who made the disclosure at the presentation of the ministry’s 2022 scorecard in Abuja attributed the increase to federal government’s effort to complete the Gas Flare Commercialization Programme (GFCP).
He said it has led to a 8.6 per cent rise in domestic LPG demand adding that there is currently an ongoing review of the programme which led to identification of 48 flare sites.
“Six of them have been taken out of the basket because they are not commercially viable (because the flare volumes are minimal). The plan is that these flare sites will be allocated by Q4 2022,” he said.
Sylva said as a result, the federal government is targeting 1.80 per cent completion of the GFC Programme.
According to the minister, it plans to increase LPG penetration for availability of the product as well as intervention programmes such as Nigerian Gas Expansion Programme.
He said that through its stakeholders’ engagement, the ministry has been able to engage in evaluation and study on the impact of gas penetration programme on the economy and consultancy service for the development of CNG/LNG templates.
He however said there is a need for more sensitization for operators and users, and increased collaboration between sector regulators and industry players.
In a bid to increase crude oil production to 3mbpd, the minister explained that the government plans to mobilise domestic revenues and eliminate revenue leakages, 0ptimize current crude oil production in existing wells, increase exploration activities to achieve target, mature other existing opportunities within the frontier & local production, and improve security in operating environment to protect pipelines.
All these, Sylva said, led to the completion of 2D seismic data acquisition in Bida Basin, inauguration of multi-agency security support committee for Chad Basin re-entry, and the setting up of response team to repair any interference on pipeline network.
He explained that addressing the underlying issues would help the country meet its OPEC+ production quota and put an end to vandalism of petroleum pipelines and militancy in the Niger delta region.
He assured that the federal government will continue to collaborate at highest level with security agencies as it strives to increase its production which dropped to less than 1 million bpd in September.
Speaking further, the minister said that an intervention fund to be established at the Central Bank of Nigeria (CBN) to help address issues relating to reduced Foreign Direct Investment for oil and gas related investments due to global drive for increase in climate friendly investments. This, he noted, added to insecurity issues has deterred investors.
As a result, the Petroleum Training Institute (PTI) collaborated with Asteven Renewable energy to train Niger-delta youths on solar photovoltaic installation
According to him, “PTI National Skill qualification Framework(NSQ) has trained youths on automobile, mechatronics, welding and fabrication and electrical maintenance one; established modular refineries which created about 10,000 direct/indirect job in-country
PTI Skill Development Academy(SDA), and entrepreneurial center has trained youths within the host community on several hands-on skills like making of soaps, perfumes, disinfectants, bleach, catering/baking, bag making etc,”
He said there is need to accelerate public awareness of green project initiatives of the government
“The Ministry has succeeded in passing landmark statutes such as the deep offshore and Inland Basin Acts, as well as the marquee Petroleum Industry Act. It has also secured funding for the rehabilitation of the three existing refineries to enhance the nation’s domestic refining capacity. The Gas Flare commercialization is at the final stage of award of the flare points to potential winners.
“The Ministry has encouraged more indigenous participation by facilitating crude access and ease of license approval. The 5 per cent reduction in the cost of crude extraction was also achieved and surpassed,” he explained.
