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Commericialising gas flare sites’ll turn Nigeria to LPG exporter—Derefaka

The Program Manager of the Nigerian Gas Flare Commercialization Programme (NGFCP), Office of the Minister of State for Petroleum Resources (MPR), Mr Justice Derefaka, has said that the ongoing efforts of the Ministry to commercialise gas flare sites will raise output in Liquefied Petroleum Gas (LPG) that will drive both local saturation and exports.
In an interview, he made it clear that the unfolding change in the narrative of gas flare management which is commercialisation will not only create jobs, but drive backward integration in availability which will translate to more exports going forward.
According to him, what is needed now is support for the Federal Government efforts in getting credible investors which NCFGP is on top of.
This is coming as the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGM) has commended the Federal Government for the removal of Value Added Tax on locally produced LPG.
The marketers agreed that the move will further encourage indigenous investors to boost their investments and extend market coverage to underserved population.
Business Hilights recalls that recent figures showed that almost half of the Liquefied Petroleum Gas (LPG), also known as cooking gas, consumed in the country in the first three months of 2019 was imported from India and five other countries, upon being the home to the largest natural gas reserves in Africa and the ninth largest in the world.
The National Bureau of Statistics (NBS), had last week Tuesday disclosed that 47 per cent (146.14 million litres) of the LPG supply in the country in the first quarter of this year was imported while 53 per cent (164.71 million litres) was produced locally.
gas tank

The United States accounted for 46 per cent (67.10 million litres) of Nigeria’s LPG imports in the period, while India, Trinidad and Tobago, Algeria, Argentina, and Equatorial Guinea supplied the remaining one per cent.
Nigeria imported 61.39 million litres of LPG in January, while 33.22 million litres were produced locally.
The country imported 26.60 million litres and 58.15 million litres in February and March respectively while 55.72 million litres and 75.77 million litres were produced locally in February and March respectively.
NBS details showed further that Nigeria bought 12.95 million litres of LPG from India in January; 12.95 million litres from Algeria in January; 14.64 million litres from Argentina in February; 21.74 million litres and 4.69 million litres from Equatorial Guinea in January and February respectively; and 17.59 million litres from Trinidad and Tobago in March.
The US exported 19.29 million litres, 7.26 million litres and 40.55 million litres of LPG to Nigeria in January, February and March respectively.
Before now, the Nigerian National Petroleum Corporation (NNPC) had noted that Nigeria has around 202 trillion cubic feet of proven gas reserves plus about 600 trillion cubic feet unproven gas reserves.
However, the Group Executive Director/Chief Operating Officer, Gas and Power, NNPC, Mr Saidu Mohammed, said “Out of 8.5bscfd of natural gas production in Nigeria, only 18 per cent of natural gas produced is being utilised by the domestic market. A large percentage of the gas produced is used for the export market. Re-injection is 32 per cent and flared gas stands at seven per cent.”

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