The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) has signed two new agreements with Femadec Energy and Novatec on compressed natural gas (CNG) and liquefied petroleum gas (LPG).
This is according to a September 19 announcement made on the Authority’s social media page.
In a collaborative move, the Midstream and Downstream Gas Infrastructure Fund (MDGIF) of the NMDPRA inked a crucial Memorandum of Understanding (MoU) with Femadec Energy, focusing on bolstering the provision of Compressed Natural Gas (CNG).
The auspicious occasion saw the presence of the Presidential Initiative on Compressed Natural Gas (PICNG), a pivotal driver of the Federal Government’s ambitious “Decade of Gas” initiative.
Further advancing the gas sector, the NMDPRA granted its approval for the construction (ATC) of a 500 metric ton (MT) liquefied petroleum gas (LPG) depot in the Federal Capital Territory, Abuja.
This green light was extended to Novatec Energy Limited, marking a pivotal step toward enhancing the accessibility and distribution of LPG in the heart of the nation.
These strategic moves demonstrate a concerted effort to bolster the country’s gas sector, aligning with the broader vision of energy optimization and sustainability.
Backstory
The Bola Tinubu administration is focused on providing alternatives to the use of petrol in the country, following the removal of fuel subsidies.
On August 1, 2023, during a live broadcast, President Tinubu said his government is targeting states and local governments to roll out compressed natural gas (CNG) buses as a solution to ease the burdens created by the removal of fuel subsidies in May 2023.
It is also important to note that industry stakeholders have advised that a rollout of all forms of gas will be easier for the populace who can then choose their preferred gas variant based on what is available in their respective locations.
Note that during an exclusive interview with Nairametrics, Felix Ekundayo, the President of the Nigeria Liquefied Petroleum Gas Association (NLPGA) said that Nigeria boasts a robust LPG infrastructure, showcasing extraordinary expansion from 60,000 MT in 2007 to a remarkable 1,500,000 MT presently.
So, the accessibility of LPG has spread extensively, leaving only a handful of areas experiencing scarcity.
He said that the NLPGA perspective underscores a judicious government approach one that avoids singular resource focus and embraces a diversified strategy for the seamless implementation of gas.
This stance resonates perfectly with the initial objectives and standards set for development.
Note that the Federal Government has said that CNG stations which will support intra-city transportation will be ready by the first quarter of 2024.
