• Saturday, July 13, 2024
businessday logo

BusinessDay

Save cost by switching to gas, oil regulator tells hotels, banks, others

Save cost by switching to gas, oil regulator tells hotels, banks, others

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has urged schools, banks, hotels, factories, estate developers and other big companies that consume huge volumes of petrol and diesel to consider switching to gas to keep their operations sustainable.

The authority made the call during a meeting in Lagos with oil and gas associations, chief executives of schools, banks, hotels, factories, estate developers and other companies, according to a statement by the oil regulator.

The objective of the engagement was to ensure the transition of huge consumers of diesel and petrol to gas and create awareness of the dangers of installing unlicensed diesel storage and the need for any company, operating in whichever sector, to obtain licenses from the authority to store a large number of petroleum products.

Read also: Nigeria unable to meet local, international gas demands

Farouk Ahmed, the authority’s CEO, represented by Ogbugo Ukoha, the executive director, distribution systems, storage and retailing infrastructure, NMDPRA, tasked the public to consider using gas as the transition fuel in the country.

“We encourage operators and businesses to take advantage of the evolving opportunities in the gas value chain for sustainable business growth by positioning their energy needs to embrace gas derivatives (Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Auotogas, Propane & Butane) to hedge against future global uncertainties to Diesel supply,” he said.

“Finally, the support and collaboration of operators and businesses are enjoined to achieve a safer and cheaper energy operating environment.”

The authority also appealed to all petroleum handlers to fully comply with the provisions of the Petroleum Industry Act (PIA) and NMDPRA regulations to avoid strong regulatory enforcement, which may adversely impact business operations.

The NMDPRA boss reiterated the authority’s commitment to enabling businesses and ensuring the growth of Nigeria’s midstream and downstream sectors.