Nigerian state agency unveils LPG Cylinder Manufacturing plant to enhance gas utilization

NIGERIA– The Nigerian Content Development and Monitoring Board (NCDMB), a Nigerian state agency has unveiled an LPG composite cylinder manufacturing plant to enhance gas utilization in the country.

The plant with a production capacity of between 400,000 to 1 million LPG composite cylinders per annum will make composite LPG cylinders accessible and affordable to Nigerians as well as create employment opportunities.

A statement from NCDMB revealed that the project aimed at enhancing gas penetration in Nigeria was launched by the Minister of State for Petroleum Resources, Chief Timipre Sylva.

NCDMB explained that it built the gas hub on a 10.6 hectare of land which was purchased in 2013 for the establishment of a pipe mill after plans to launch the pipe mill were not successful.

Nigeria’s Minister for Petroleum Resources explained that the launch of the gas hub would help Nigeria diversify its economic productivity and develop the country’s gas infrastructure value chain.

Sylva further noted that the plant’s location which is close to the Gbarain Gas Plant that produces more than one billion standard cubic feet per day of gas provides opportunities to leverage on the proximity to activate value-adding initiatives.

He added that LPG penetration nationwide would help the country reach its supply for the LPG value chain.

NCDMB in its statement further revealed that it developed a 10-year Strategic roadmap in 2017, and began implementation in 2018 with the aim of reaching 70% Nigerian Content level by the year 2027.

Wabote further explained that the strategic roadmap provided the leverage to use the Polaku land for gas related activities and partnership with Rungas Limited to setup LPG Cylinder Manufacturing plant.

He further noted that Shell Nigeria set up the Pressure Reduction and Metering Station and Total Support Energy Limited provided the CNG and LNG mother-stations.

He added that with the new direction on gas, the NCDMB negotiated partnerships with three investors and 5 hectares of land have already been procured for further development.

In a similar move, Rainoil Limited, one of Nigeria’s integrated downstream oil and gas company, launched a new Liquefied Petroleum Gas plant in the country’s financial capital, Lagos.

The inauguration ceremony of the new plant with a tank capacity of 8,000 metric tonnes was also presided over by Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva.

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