• Friday, May 24, 2024
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Hyde Energy highlights LPG investment opportunities in Nigeria

Hyde Energy highlights LPG investment opportunities in Nigeria

Hyde Energy, a reliable global energy trading company with a downstream network has called for the adoption of Liquefied Petroleum Gas (LPG) as a sustainable and healthier alternative to wood for heating and cooking purposes as Nigeria owns the largest gas reserves in Africa.

According to the energy company, the future of LPG in Nigeria holds significant potential due to the country’s growing population, increasing consumption, and demand for LPG.

Also, the socio-economic challenges and the need for sustainable energy to meet the growing needs of various sectors of the economy highlight the enormous market opportunity for LPG in Nigeria.

However, Oladimeji Edwards, chief executive officer of Hyde Energy said that the Nigerian population is underserved with LPG.

“Morocco today has the biggest LPG business on the continent, and Morocco has a population of 60 million people, consuming about 5.5 million tons of LPG annually,” he said.

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“In contrast, we are about 210 million people in Nigeria, and we consume about 1.4 million tons per annum today.”

Edward added that in the LPG business, there is a convergence of events: there is deforestation, which means firewood is expensive and scarce and there is also no subsidy for kerosene.

“With these things converging, there’s no better time for the LPG business than now,” he said during a recent media roundtable held at the company’s office in Lagos.

Despite the gradual increase in consumption, Nigeria has the lowest per capita usage of LPG in Sub-Saharan Africa, consuming only 1.8kg compared to Ghana’s 3.0kg, South Africa’s 5.5kg, and Morocco’s 44kg.

With the West African regional average at 3.5kg, Nigeria’s consumption stands at a meagre 1.8kg per capita.

Olumuyiwa Akande, the Head of LPG, Hyde Energy during the media briefing said that LPG is the future of the energy business in Nigeria.

“Nigeria is a gas-rich country, with more than 200 trillion cubic ft of gas reserves in six of the country’s seven sedimentary basins, which are commercially rich in gas. I believe that it is the way to go as a country,” Akande said.