Butane Energy, NCDMB to Unveil Four More LPG Plants in Northern States
Peter Uzoho
In the push to promote the use of Liquefied Petroleum Gas (LPG) as a cleaner and more cost efficient source of fuel for cooking in Nigeria, Butane Energy Limited and its joint venture partners, the Nigerian Content Development and Monitoring Board (NCDMB) have set timelines for the completion and inauguration of additional LPG plants sited in four northern states.
With the 100-tons LPG plant in Katsina already working, the company said the Kaduna plant would be inaugurated by end of this month or beginning of August, and Bauchi plant for unveiling between September and October this year while that of Kano would be operational by first quarter of 2025.
In an exclusive project update interaction with THISDAY, the Executive Chairman of Butane Energy Limited, Mr. Isa Inuwa, said the plan to construct another LPG plant in Abuja is on course as the company has already imported all the equipment needed for the construction and is currently working to acquire land.
Butane Energy was set up in 2017 as an LPG storage, trading and marketing company with distribution assets in the Northern part of Nigeria, with equity investment from the NCDMB, in line with the agency’s drive to catalyse local firms that are invested in adding value in the country’s oil and gas industry and linkage sectors.
According to Inuwa, the five plants have a total storage capacity of 1000 tons while the company has a combined transport capacity of about 180 to 200 tons for movement at anytime using trucks.
He explained: “We are commissioning Kaduna facility at the end of this month or beginning of August. In fact, I just wrote a letter to NCDMB informing them that we are commissioning and that they should come and participate like they have done in the past. And I also wrote that they can choose whoever they want to come and commission.
“For Bauchi, we hope to do the commissioning in September or beginning of October, we are currently constructing.
“For Kano, we will start construction around October and by first quarter of 2025, we will commission it by God’s grace. For all our projects, we have all the equipment on the ground. We have imported everything.
“For Abuja, we have all the equipment on ground but we don’t have a plot of land yet.”
He said while waiting to begin construction of the Abuja plant, the company is working towards securing an already existing plant on lease around the Federal Capital Territory (FCT) to start trading cooking gas ahead.
By the first quarter of 2025, the executive chairman said Butane Energy would have at least four of its own plants and one on lease running to further help in making LPG available to users.
He added: “Our initial expectation was that by now, those five plants would be working. But in Nigeria, implementing a plan is a problem because of impediments from the government.”
He also informed that the company has its own cylinders customized with its name, Butane Energy, saying “when you come to our plant, we can sell cylinder to you, we can sell pipe to you, or regulator, or furnace, or sell gas to you.”
To ensure regular availability of products, he said the company had registered as an off-taker in about nine suppliers including KSML, NaphGas, Nipco, PNG, NesoGas, NNPC Retail, NNPC Trading Limited, AA Rano and Shafa.
In terms of job creation, he said when all the five plants start working, the company would have between 100 and 110 people directly employed while indirect employment would be between 150 to 200 people.
However, as part of its future plans, Isa disclosed that Butane Energy anticipates taking a franchise from another company, with some modification and investment to enable it promote autogas.
“Now, we are contemplating taking a franchise from the company that will enable autogas to be dispensed to motorcycles, cars, tricycles in all our plants. But we are in discussion at the moment and have not finalised,” he stated.
