Nigerian National Petroleum Corporation, Crude oil, oil production

The Nigerian National Petroleum Corporation (NNPC) is set to unveil the largest Liquefied Petroleum Gas (Cooking Gas) and Propane Storage and dispensing facility in Oredo, Benin City, Edo State.

Disclosing this in Abuja today, NNPC’s spokesman, Mr. Ndu Ughamadu, said the facility is being designed to serve as an extension of the Integrated Gas Handling Facility, IGHF.

According to Ndu, NNPC and its subsidiary, the Nigerian Petroleum Development Company Ltd (NPDC), would unveil the facility as part of its efforts to fast-track the consumption of cooking gas in Nigeria.

“The facility, which is an extension of the Integrated Gas Handling Facility (IGHF) plant, has the capacity to dispense 330tonnes of LPG and 300tonnes of Propane daily, in addition to the 100Million standard cubic feet of gas per day (MMscfg/d) and 260 barrels per day Condensate from the IGHF plant.”

The new plant, a game changer: The Managing Director of NPDC, Mr. Yusuf Matashi, reportedly described the IGHF as a game changer of the national oil company. He also stressed that commissioning the facilities would constitute a source of huge revenue generation for the country.

Meanwhile, the NPDC boss noted that the facility was centrally positioned to supply Gas to Lagos, South-South; South-East and to the North in order to grow its consumption across the country.

Speaking further, Matashi stated that NPDC is the single largest gas supplier to the Nigerian market, and it is responsible for supplying about 90 percent of gas required to drive power generation in Nigeria.

“Currently NPDC is the single largest supplier of gas to the domestic market with about 90 percent of gas supply targeted at power generation to drive the nation’s economy positively.

We are paying greater focus on our 100 percent assets production. NPDC assets will deliver a lot in terms of meeting its (crude oil and gas) volume targets.

“We currently contribute 10 per cent to daily national production and by end of 2019, the company is looking at 15 per cent contribution to daily national production.”

Outlook for NNPC/NPDC:  Matashi disclosed that the company has oil reserve base of 3.6billion barrels and gas reserve of 15 trillion cubic feet from its involvement in 29 concessions – 22 Oil Mining Leases (OMLs) and 7 Oil Prospecting Licenses (OPLs).

While commenting on the company’s outlook, Matashi noted that production outlook for 2019/2020 was on the bright side. He also added that the company was aggressively pursuing its drilling and field development programmes as approved by the management of NNPC.

The NPDC boss stressed that the company maintained cordial relations with regulatory agencies, such as the Department of Petroleum Resources (DPR) and had maintained its remittance of royalties and Petroleum Profit Tax to the Federal Inland Revenue Service (FIRS).

Deal book 300 x 250

The Optics: The price of cooking gas has essentially been fluctuating over time. However, according to the April price watch reported by Nairametrics,  the average price for refilling a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) decreased.

Hence, the unveiling of the new plant has tendencies of triggering a further decrease in the average prices for refilling cooking gas. If this happens, it would be a relief to small business owners and households.

Similarly, since the NPDC produces about 90 percent of gas driving the power sector, this is expected to improve power generation in the country.

Coronation Research

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