The Nigerian National Petroleum Corporation (NNPC) has stated that it will continue to increase the supply of Liquefied Petroleum Gas (LPG) to curb high prices.
This was stated on Monday by the group managing director, Mele Kyari while speaking to journalists at the commissioning of a privately-owned 120 metric tonnes LPG storage and bottling plant constructed by Emadeb Energy Services Limited in Abuja.
Kyari attributed the soaring price of LPG to inadequate supply and international gas pricing indices.
According to him, the price of crude oil and its derivatives and all other petroleum products and derivatives at the international market affects the price of LPG.
“Two things are in place, one is supply and second is the international market of gas. As you are aware, it moves with the international price of every other petroleum product, including crude oil and its derivatives,” he said.
“Definitely, it is a reflection of what is happening in the international market.
“What we are doing is to increase supply. Once supply increases, prices will come down.
We as NNPC will guarantee supply, that is very important for us and as you are aware, we are NNPC limited, we are here to support and also make money for Nigeria and therefore, we will be there in the upstream to provide gas through our very many initiatives so gas will be made available to this company and entities.”
Debo Olujimi, chief executive officer (CEO), Emadeb Energy, emphasised the need for government to provide enabling environment for private investors.
According to him, it would ensure that investors get returns on investment.
“The truth about it is that it is a lot of expenses, it is capital intensive doing gas infrastructure, and that is why the government needs to encourage private investors so that they can come in with funds to be able to get value,” he said.
“The major issue with electricity today is gas shortage and pricing. So these are things that the government needs to help us in looking at.”
He further said that the plant, which is currently a 120MT LPG facility, would be expanded to 250MT within the next 12 to 18 months.
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