• Thursday, March 28, 2024
businessday logo

BusinessDay

Hyde Energy calls for investments in infrastructure to drive LPG market

Hyde Energy highlights LPG investment opportunities in Nigeria

Hyde Energy made a recommendation for considerable infrastructure investment at the recently ended 2nd West Africa LPG Expo and Nigeria Liquefied Petroleum Gas Association (NLPGA) Summit 2022 to make liquefied petroleum gas (LPG) more accessible and affordable in Nigeria.

The summit, with the theme ‘Energizing the Future: LPG as a Sustainable Fuel in African Economies,’ has gained momentum in Nigeria and offers industry participants a forum to interact with local and international stakeholders to gain knowledge of the LPG market and build relationships with more than 3,000 delegates from across the value chain.

Oladimeji Edwards, chief executive of Hyde Energy, applauded the NLPGA’s efforts to bring together industry stakeholders to discuss issues and exchange tactics to help Nigeria’s LPG market unlock its incredible potential.

“This is a brilliant platform for relevant stakeholders in the industry. It is a great event which brings in international and indigenous experts to exchange ideas, opinions, trends and outlook for the future.”

In a panel discussion, Edwards urged more cooperation among the industry’s important players to develop necessary measures that may enhance the sector’s infrastructural development to lower the price of LPG and boost supply.

Read also: Nigeria’s potential promising as investors turn to wind energy

“To reduce the cost of LPG, it is very important to build infrastructure to a captive market, to take it from truck to skid, to dispensing unit, all the way down to the cylinders, and ultimately at some point, the next generation will reticulate as part of standard code for construction at which point in time, we would have had ample supply of LPG distribution across the country,” he said.

Given that Nigeria has enormous gas deposits but insufficient infrastructure surrounding gas resources, he continued, it is necessary that all hands be on deck and demonstrate that infrastructure development is feasible.

“Gas suppliers are importing LPG, paying in US dollars, and due to inflation and devaluation this affects retail prices, but with good infrastructure, I assure you that we will have an enabling environment for investment to thrive and everyone will be happy,” he stated.

Nigeria is one of the fastest-growing LPG markets in the world with more than 20percent average growth per annum for the past 10 years. In 2020, Nigeria recorded a national LPG consumption of 89.91 thousand MT (PPPRA, 2020), with a positive variance of 7.9percent above the targeted estimated figure.