To make the supply of liquefied petroleum gas (LPG) or cooking gas easy, the Nigeria Liquefied Natural Gas Limited (NLNG) and the international auditing firm, KPMG have carried out studies to find out what makes supply of the commodity cumbersome in the country, The Nation has learnt.
NLNG’s immediate past Managing Director, and Vice President, Safety and Environment (S&E), Shell Upstream International Leadership Team, Babs Omotowa, told The Nation that the studies have been completed and that the gas company was working with the government to remove all bottlenecks to make the commodity readily available in the country.
Omotowa said the Nigeria LNG carried out study on the issue and hired KPMG last year to carry out its own study, adding that the auditing firm has submitted its findings, which are currently being worked on.
He said: “At NLNG, we have carried out a study, we also appointed KPMG late last year to carry out a study on what needs to be done to unblock all of these challenges and they have submitted their report. We have also engaged with the Vice President’s Office and we are working with the VP’s office around how the government will take the lead on unblocking all these issues and the private sector will also make an investment.”
The Liquefied Petroleum Gas Retailers (LPGAR) had accused a cabal that hijacked the LPG business in Nigeria for being responsible for the problems in the LPG subsector.
LPGAR National Chairman, Mr. Michael Umudu, told The Nation that the LPG business has been hijacked by a cabal. The hijack, according to him, accounted for the price of the commodity rising from N2.3 million to N4.3 million for 20 tonne, and the cost of filling a 12.5-kilogramme cylinder from N2,500 to N4,000.
Umudu said: “I am not here to mention names, but we all know that NLNG appointed a selected number of firms to receive and market the product. They should explain to us the factors that brought us to this precarious situation. They (off-takers) should explain to LPG stakeholders, the government and the consumers what happened. We worked together to persuade the government to intervene when the sector was almost dead in 2007.”
But Omotowa noted that the major problem in LPG supply is infrastructure deficit. “I think the challenge in LPG is one around infrastructure. We need as a country to build more receiving terminals. The only two terminals we have in Lagos are not enough. We have to build more terminals in Port Harcourt and Calabar. We have to invest in transportation of LPG from those terminals into the country either by rail or by trucks. We have to ensure as a country that we have enough distribution centres across the country. So, there is quite a lot of infrastructure work that needs to be done.
“At NLNG, we are not aware of any cabal, we do not subscribe to any cabal. We supply to any terminal that is available. We are encouraging any person, who is able to invest in any other terminal to invest so that the product can be made available. We are working with the government both the executive and the legislature on actually how to unblock all the challenges across the entire value chain so that LPG is available not just in Lagos, but in Sokoto, Kano and Kaduna so that the issues around deforestation and people chopping trees can reduce and health and environmental concerns of people in those areas can be further improved.”
Source : ThenationonlineThenationonline