…hints on efforts by FG to reduce price of cooking gas

by Mfonobong Ukpong

Nigeria’s Minister of State for Petroleum (Gas) Obongemem Ekperikpe Ekpo has hinted that plans are underway to end gas flaring in the country by 2030.

In an interaction with newspaper publishers and media personalities in Akwa Ibom over the weekend at his private residence in Abak, the Minister who regretted the harmful effects of gas flaring on the environment and the attendant loses to the country’s economy, further disclosed that his Ministry is working with relevant stakeholders in the Oil and Gas industry, including International Oil Companies, IOC’s, Nigerian Upstream Regulatory Commission, NURC, and others to end gas flare and see how the wasted gas could be commercialized.

The Honourable Minister announced that about 43 companies were recently awarded contract by the Nigerian Upstream Regulatory Commission, NURC, to stop gas flaring and convert the flared gas into commercial venture.

In his words; “On the issue of gas flare out, the government of Nigeria is determined and committed towards ensuring that an end is put to it by 2030”.

“When i was talking i made mention of Decade of Gas. Under the Decade of Gas initiative, we are talking about how to commercialize gas and make it meaningful. Of course, recently about 43 companies have been awarded contract by the Nigerian Upstream Regulatory Commission, NUPRC to take away gas flaring. These companies would capture the gas and turn it into a commerical venture and we will be making good use of it”.

He commended Total Energy for keying into the zero gas flare directive of his Ministry, maintaining that he was working round the clock to ensure that IOC’s comply with the zero gas flare policy.

“My visit to Total Platform was when i heard they are in compliance with the non-flare policy of the present administration. So, i needed to go and see it myself. They took me around their platform, and i observed that it was zero flare. And that’s what they say is applicable to all their platforms”.

“I’ve sent the same signals to other International Oil Companies, IOC’s yet to follow suit that they have to follow suit. We don’t need gas flare again in Nigeria”.

“We are working on that, and some of the Oil companies are complying. Of course it was a bid to discourage gas flaring. That’s why we imposed fines. If you flare you pay some amount of money in such a way that if it bites you, then you’ll look for a way to make sure you capture it and turn it into commercial venture, because gas is the next level of our development”.

“When we talk about energy transition, we are talking about gas. So, it has to be converted from being flared out to being used as fuel to grow the economy. We need gas in every aspect of our lives; in the kitchen we need gas. We need to look for a way and discourage the use of firewood. It doesn’t help, it kills because of the carbon that comes out of it. But because they think it’s expensive to go into the gas sector they withdraw from it…….. We are totally against gas flaring and we are working assiduously towards stopping gas flaring”.

On the high cost of cooking gas, the Minister explained that government has identified the cause of the rise in the price of LPG and is not relenting in ensuring that Nigerians have access to affordable gas for domestic use.

According to the Minister; “LPG is the cooking gas we all use at out homes. In Nigeria you can have the liquified Natural Gas (LNG) but you don’t sell Liquified Petroleum Gas (LPG). That way we have placed a total stop……to make sure that we have in-country circulation of LPG”

Why we are having these differences; with the increased advocacy on the use of LPG, there is corresponding gradual increase in the demand for it. That’s why I’m talking about the establishment of gas plants at various parts of this country so that we can have sufficient quantity. So, the price shouldn’t go up. But because of the high demand in LPG, there are some people that are importing this LPG into the country. There are two things that are contributing to that. When they import it into the country, they would sell at high rate than the ones produced within the country. And you know Nigerians, who want to take advantage of any situation. The moment those once that are imported are selling at a higher rate, those once selling locally would step their own and maximize profit”.

“Nigeria has a blending of LPG of 40, 60(propane and butane). But some of those companies like Chevron, NNPC and a few other IOC’s produce their own gas in the ratio of 50:50 or 30 which is not the blending that we needed here”.

So, recently, we convened a meeting with Chevron, Mobil urging them to stop selling their gas (LPG) outside the country. We have moved a step further to look for a bending plant that would blend it to our own specification. That question you asked me the President asked me same question yesterday, and i told him the efforts we’ve made in this regard”.

“We met with the Chief Executive of Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, where we discussed how we can stop the export of gas from those independent producers. When we stop the export, we blend it to our own specification, and the price would come down. Last two weeks i met with the Chevron team and i told them we have to finish that very project. And when we do that, the price will come down”.

“You’ve heard the fixing of gas price that was done few days ago. It is incumbent upon NDPRA to fix price of gas. Have patience with us. We are working towards that. It will come down”.

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