Rivers
LPG Firm Embarks On Major LPG Facilities Upgrade
Nigeria’s Liquefied Petroleum Gas (LPG) is set to receive a major boost as StockGap Fuels Limited has commenced work on massive expansion of its storage facility in Port Harcourt, Rivers State.
The Terminal Manager, StockGap Fuels Ltd, Port Harcourt, Mr Obioma Ebisike, disclosed this during the Annual General Meeting of Nigerian Association of Liquefied Petroleum Gas Marketers held in Port Harcourt, midweek.
Speaking with journalists during the event, Ebisike stated that the company intended to increase its storage capacity by 50 per cent by 2023 and double by 2024.
StockGap Fuels is a major player in the downstream sector of the energy industry and is involved in supply and distribution of refined petroleum products, with emphasis on the white products such as LPG, PMS and DPK.
It is the only company in the South-South that has a terminal that can receive LPG directly from NLNG.
Ebisike stated that the investment the firm was making in the expansion of its facilities is because of the need to improve access to LPG and other petroleum products in Nigeria.
Stakeholders at the event commended the company for the massive investment it had already made by providing one of the largest LPG storage facilities in the country, which is put at 15,000 metric tonnes.
Ebisike stated that investment in gas facilities was of absolute importance if the price of cooking gas is to be brought down in the country.
“Today, it is StockGap terminal that allows NLNG to deliver gas to customers in this region. We need more terminals in places such as Onitsha, etc. This will lead to a crash in price of LPG,” Ebisike said.
Speaking at the event, Managing Director, Nigeria Liquefied Natural Gas Limited, Dr Philip Mshebila, called for massive investment in the local gas sector, noting that limited facilities were a major reason for the high cost of cooking gas in the country.
He added that aside Stock Gap Fuels, NLNG is currently unable to supply to other firms in the South-South due to the absence of coastal terminals.
“Shortage of Jetty infrastructure, especially outside Lagos, is a major challenge in delivery of LPG to the Nigerian market.
“Sometimes vessels wait for weeks before they can discharge their content. Limited storage capacity along the coast, “ he said.
Mshebila put domestic gas consumption at “1.2million metric tons, out of which NLNG produces 400,000 Mt, which is about 40% of local market requirements”.
He added that he intends to increase supply by removing factors that limited its capacity utilisation to between 60 to 70 per cent.
The MD hinged a lot of hope of NLNG Train7, which is expected to come on stream within the next few years, to improve supply of LPG by an additional 30 to 35%.
By: Ike Wigodo
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