NNPC to up­grade cook­ing gas plants with N600bn

Daily Trust - - BUSINESS - By Daniel Adugbo

The Nige­rian Na­tional Pe­tro­leum Cor­po­ra­tion (NNPC) says it is pur­su­ing a growth plan which will re­quire up to $2bn (about N600bn) to re­vamp Liq­ue­fied Pe­tro­leum Gas (LPG), cook­ing gas, plants and build new Com­pressed Nat­u­ral Gas (CNG) plants across the coun­try in the next five years.

The plan was re­vealed in a doc­u­ment made avail­able to in­vestors by the NNPC at a re­cent road show in China, where a mem­o­ran­dum of un­der­stand­ing (MoU) worth over $80bn to be in­vested in oil and gas in­fra­struc­ture was signed with some Chi­nese com­pa­nies.

CNG is gas used in place of petrol or diesel in light-to-medium-du­tytrucks, buses and cars man­u­fac­tured for CNG use.

CNG use was low in Nige­ria, prompt­ing the Nige­rian Gas Com­pany (NGC), a sub­sidiary of the NNPC, to con­struct a num­ber of medium-sized pub­lic CNG re­fu­elling sta­tions across the coun­try.

For the LPG plants, the NNPC, in April, in­vited in­vestors to up­grade, op­er­ate and se­cure eight LPG bu­tani­sa­tion (bot­tling) plants na­tion­wide un­der a Joint Ven­ture (JV) model.

The fa­cil­i­ties for up­grade, ac­cord­ing to the NNPC ten­der, were the Apapa LPG Plant, Ilorin, Ibadan and Enugu LPG plants.

Other plants that have been placed for re­pairs were the Kano LPG Plant, Gusau, Gombe and Makurdi LPG plants.

Prices of LPG or cook­ing gas have been sky­rock­et­ing in the last few months due to sup­ply and in­fra­struc­ture hitches but stake­hold­ers say that re­sus­ci­ta­tion of the bot­tling plants would solve sup­ply hitches and make pric­ing com­pet­i­tive.

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