Energy Crisis: Price of domestic gas to crash as NNPC set to increase supply
The Group Managing Director of the NNPC Ltd, Mr Mele Kyari, disclosed this in Abuja while speaking with reporters shortly after inaugurating Emadeb Energy Services Limited’s 120MT LPG Storage and Bottling Plant.
Speaking on the development, Kyari explained that the rise in the price of cooking gas was a reflection of the rising price of crude oil and its derivatives at the international market.
The price of crude oil as of Monday was put at $72.68 per barrel.
The NNPC GMD expressed optimism that the newly-inaugurated LPG plant would reduce the cost of energy for Nigerians.
He said, “The price would soon crash once the NNPC raises its supply of the product. Two things are at play; one is the supply and the other is the international price of gas.
“It (price) moves with the price of every other petroleum product including crude oil and its derivatives. So it is a reflection of what is happening in the international market.
“What we are doing is to increase supply. Once supply is increased the prices will come down.”
Before the passage of the PIA which overhauled the country’s rich oil and gas industry, President Muhammadu Buhari had in March declared 2021 to 2030 the ‘decade of gas.’ The energy source is seen as cleaner than fossil fuel.
Kyari said one of the many ways investors could key into the decade of gas initiative was to have facilities such as this for auto-gas conversion, and also to ensure that LPG is easily accessible by the people.
He expressed optimism about the company’s plan to, within the next 12 to 18 months, build a similar plant in six different locations countrywide.
He specifically noted that the company had gone into these ambitious ventures in line with PresidentBuhari’s decade of gas initiative.
Before inaugurating the plant, Kyari had expressed satisfaction that numerous partners were keying into government’s aspirations of providing cheaper gas for the country.
He pointed out that the development would culminate in tapping from the enormous gas resources in Nigeria.
Kyari also said that this would also lead to extensive domestic utilization of gas and export of the product as well as result in energy security, peace and prosperity of the country.
He pledged the NNPC’s support for Emadeb Energy Services Limited in terms of supply and provision of information to promote business investments in the country.”
