The unfolding energy transition in a country with an abundant gas supply can serve as not just a transition fuel but create huge opportunities for investments. These are among the themes to be explored at the 13th edition of the Nigeria Liquefied Petroleum Gas Association (NLPGA) International Conference.
For 13 years, the NLPGA has consistently held an annual international conference which is the premier industry event that brings together major players in one location to share the huge potential and opportunities that lay with the usage of LPG. This year’s event holds on November 7 and 8 at the Petroleum Technology Development Fund Towers in Abuja, FCT.
The conference in 2022, in collaboration with the Nigeria LNG Limited (NLNG) celebrated the 15th anniversary of the uninterrupted supply of domestic LPG in the country. The intervention saw the supply of LPG grow from 60,000 MT in 2007 to over 1.3 million MT in 2021 (a growth of over 1,000 percent), creating over 150,000 jobs.
Delegates expected As usual, include regulators, producers, manufacturers, operators, traders, and every other stakeholder. This year’s conference offers opportunities to build relationships with industry participants and gain knowledge of the unique financing, insurance cover, and other business enabling requirements of the sector, the organisers say.
According to Felix Ekundayo, NLPGA president, sessions that will be discussed by industry experts include Autogas as the Alternative to Fuel Subsidy which is a germane issue in our national discussion currently; Recommendations for Autogas Policy and Rollout; Technology in LPG: Opportunities for the Youth; Lifestyle Impact and Economic Empowerment for Women as discussed by Women In LPG; Identifying financial incentives for the Decade of Gas; the Petroleum Industry Act: Multiplier Effects in LPG Sector; LPG: Boosting Revenues – Adding Weight (Sales), Cutting Losses.
“These sessions will serve as sub-themes to further drive home the main theme of the Conference, LPG: Bridging the Energy Transition. This is an interesting time in the Gas industry, particularly in the country,” Ekundayo said.
PwC Nigeria estimates that economic activities stimulated by the domestic utilization of Nigeria’s recoverable proven gas reserves have the potential to generate a Gross Value Add (GVA) of $18.3 billion yearly to the domestic economy and $10.5 billion through direct economic value addition with LPG contributing $1.3billion and it’s excess allied components Propane and Butane contributing a further $2billion of this, which is in comparison to generating annual export value of US$7 billion.
Harnessing the country’s proven reserves for domestic utilisation can also support 6.5 million full-time equivalent jobs yearly. The unification of the Naira with the new Federal Government’s foreign exchange policy will in the long run also help the Gas industry with increased Foreign Direct Investments from investors who will be willing to exploit the opportunities available in the sector with full confidence in being able to repatriate their profits.
The need to further explore the usage of LPG other than for cooking will further be thrown open with the rising cost of old fuels like diesel and petrol; alongside the rapidly increasing traditional form of energy generation through electricity as Service Based Tariffs for electricity guided by the Nigerian Electricity Regulatory Commission (NERC) is expected to increase from reports based on reactions from floating of the naira and a spike in inflation.
To be able to cope with the increased awareness and demand for LPG, the association said it is investing in research and training for the industry.
Ladi Falola Deputy President, NLPGA at a press conference announcing the event, said the industry is expected to continue growing strongly given the Federal Government’s “Decade of Gas” policy, announced in 2021. Further, the opportunities created by the subsidy removal would provide further growth impetus since LPG remains the most available alternative fuel in the automotive and industrial sectors.
The group is canvassing for incentives to ramp up the conversion of gas-powered vehicles as it has the expertise to train converters and guarantee safety. Seven out of the largest ten car manufacturers produce LPG-run vehicles and more than 27 million vehicles globally run on it, a growth of 40 percent in the last decade.