LPG’ll Boost Nation’s Economy – PPMC Boss

Liquefied Petroleum Gas (LPG) as an exceptional form of energy could boost the nation’s economy if properly harnessed and developed.

This was the ascertion of Haruna Momoh, the managing director of Pipelines and Products Marketing Company Limited (PPMC) while presenting a paper titled. “Exceptional Energy the role and importance of LPG in Nigeria’s Economy” at the just-concluded conference  organised by the Nigerian Liquefied Petroleum Association (NLPGA) in Lagos.

Momoh said since energy plays a vital role in the nation’s economic and industrial development LPG as an exceptional form of energy would help boost the economy if properly utilised.

Recalling how the demand for LPG rose from 34,000mt in the 1980s to about 129,000 mt in the 1990s, he regretted the further plunge downward to 43,000mt in 2001; attributing the decline to decades of instability in the sector and recurrent scarcity of the product.

He said with the right drive, passion and policies, the consumption of LPG could increase steadily to positively enhance the economy notwithstanding the current consumption level put at 120,000mt.

According to him, going by the projections, the country still has an excess shortfall in consumption that potential investors and government should address.

His words: “If from the projections that Nigeria with a population of more than 150 million people has about 5 persons per household then we will have an approximate 30 million house-holds in Nigeria. And assuming a projected 9 million households consume a minimum of 150 kg per annum, this translates to about 1.35 million MT per annum.  When this is compared to the country’s consumption of about 120,000 MT last year, we are still left with a market balance of about 123 million MT per annum.”

He argued that from the analysis, it is clear that there was still a substantial LPG market in the country untapped, adding “if only we leverage on the available opportunities and key into the wealth of LPG utilisation, our economy would be better improved.”

He advocated for collaboration between government, the private sector, regulatory authorities and other stakeholders in order to articulate robust policies that can strengthen regulation, improve standards and ensure a level playing ground in the sector.

He listed the areas of collaborative effort to include regular supply of LPG at affordable prices, cylinder and appliances acquisition scheme, in-country manufacture, rehabilitation of all abandoned gas plants, standardisation of LPG appliances training of technicians and aggressive awareness campaign.  Pledging NNPC/PPMC’s unflinching support and partnership until the country maximises its LPG potential, he urged the private sector to promote investments in the primary / coastal depots, trucking / transportation, and manufacturing of cylinder accessories among others.

Vivian Peace Nwinaene