Gas Penetration: NMDPRA Gives Nod for Construction of 500 MT LPG Plant in Abuja

Emmanuel Addeh in Abuja

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday announced that it had granted Noretek Energy, an Approval to Construct (AtC) nod for a 500 Metric Tonnes (MT) of Liquefied Petroleum Gas (LPG) in Gwagwalada, Abuja.

The Authority stated that the move will not only boost the much-talked-about efforts to ramp up gas penetration and utilisation in the nation’s capital and its environs, but will also create employment for the people.

 Speaking at the event, the Authority’s Chief Executive, Farouk Ahmed, noted that the approval to construct was coming at an auspicious time when the optimisation of the nation’s massive gas resources was taking the front burner.

Ahmed was represented by the Executive Director, Distribution Systems, Storage and Retailing Infrastructure of the regulatory agency, Mr Ogbugo Ukoha.

He said: “Nigeria has more than 209 TCF of gas. Not only that, government has also designated gas as the transition fuel for Nigeria. But more importantly, is the fact that the president has given the fresh impetus to these optimisations in deregulating the PMs markets.

“But more importantly, we are prioritising utilisation of gas. Two things, this will enable not just the supply to improve in Abuja. Because generally speaking, Nigeria’s gas utilisation per capita is far below what you have even in other African countries.

“Secondly, as you can imagine, this will provide employment opportunities. At  500 metric tonnes, a number of hands  will be required to work in that space. So, it is in that sense that the authority is fast-tracking the regulatory process.

“We provide regulatory supports to ensure that these milestones are met with the construction of every facility within this industry.”

However , he explained that there are other issues like the financial plans and others which the project team at the NMDPRA was ready to collaborate on with the energy firm, to ensure that the project begins operations in full as soon as possible.

 Ahmed noted that there were currently several of such LPG plants which will be ready for inauguration in the nearest future, especially in Lagos, Port Harcourt and Abuja.

“Within the gas value chain, there are many derivatives, LNG, LPG, CNG, propane and it’s in our best interest to have a full blast on all these derivatives because some can be deployed immediately for auto gas, some will do better for cooking, while others will do better for powering engines.

“But it’s important to have a full bouquet of these so that everybody can have options,” he explained.

In his remarks, the Managing Director of Noretek Energy Limited, Edward Traore, noted that the approval was a testament to the rigorous standards and commitment to integrity, professionalism, accountability, and transparency of the NMDPRA.

“Today’s milestone serves as a pivotal element in Noretek Energy’s broader strategy. We’re not simply investors in projects; we’re investors in the future. Our commitment to clean energy doesn’t end with this depot; it serves as a catalyst for our more extensive clean energy ecosystem.

“We recognise the federal government’s efforts toward clean energy, and our intention is to be more than mere spectators; we plan to actively contribute to this important initiative.

“Launching this 500-metric tonne LPG storage depot marks the first step of the proverbial 1,000-mile journey. We at Noretek Energy have a comprehensive project agenda.

“This initial installation lays the foundation for our planned expansion of LPG auto gas services and infrastructure across the region as a central element of our long-term objectives.

“Autogas is a key component of our investment plan, and presents a viable, eco-friendly alternative to traditional fuels, providing both economic and environmental benefits,” he stated.

He added that the firm aims to spearhead initiatives in CNG refuelling infrastructure and CNG conversion technology solutions to provide a reliable and sustainable energy supply to meet the escalating demand in the region.

The depot, he said, is strategically positioned to guarantee a reliable supply chain, ensuring that clean, affordable energy reache the doorsteps of homes and businesses safely.

“Our vision is expansive but focused: to be a driving force in Nigeria’s transition towards cleaner energy resources, addressing not only current demands but also securing a sustainable energy future,” he noted.