Rainoil Calls For Improved Gas Utilisation

0 8

The Executive Director of Rainoil Limited, Mr Emmanuel Omuojine, has said optimal utilisation of gas is a sure way of achieving energy security and equity in Africa.

A statement quoted Omuojine as saying this in Cape Town, South Africa, while delivering a paper titled, “The Critical Role of Liquified Petroleum Gas in Africa Energy Transition”, at the recently concluded Africa Refiners and Distributors Association Conference.

He said that this was an anomaly since Nigeria has the most proven gas reserves in Africa at over 209tn cubic feet.

Omuojine added that Nigeria’s domestic demand for LPG increased from just over 400,000 MT in 2016 to over 1.3m MT in 2022.

“There are familiar obstacles to the growth of LPG sector in Nigeria. This includes persistent gas flaring, inadequate gas processing facilities, poor transportation infrastructure, sub-optimal vessel berthing facilities,” he added.

Omuojine highlighted the impact of inadequate funding to LPG projects especially in the recent shift in global funding from fossil fuel to renewable projects.

“The regulatory and policy frameworks also need to be effectively implemented to provide investment incentives and reduce approval bottlenecks experienced in project execution.”

He stated that despite the growth in renewable energy projects, oil and gas would remain a significant part of Africa’s energy mix, with gas accounting for at least 25 per cent of this by 2050.

According to him, Africa has over 620tn cubic feet of natural gas reserves which will be critical to its energy security.

Omuojine said international oil companies like BP, Chevron, ExxonMobil, Shell and TotalEnergies raked in combined record profits of over $199.3bn in 2022. “Unsurprisingly that have soft-pedaled on their aggressive plans to slash oil and gas production by 2030.”

The Rainoil boss added, “For Nigeria to harness the benefits of its energy transition is to fully implement the Petroleum Industry Act especially as it relates to the optimal utlisation of the country’s vast gas reserves.”

“Rainoil is fully vested in the development of LPG in Nigeria. Over the last four years, Rainoil has invested more than N10bn in LPG bulk storage, trucks, filling plants and retail skids. Rainoil, he assured is committed to investment in gas which we view as critical to addressing the energy transition dilemma of reliability, affordability and sustainability.”

He said that while Nigeria has significantly improved its annual per capita consumption of Liquefied Petroleum Gas from 1.8kg in 2015 to at least 5kg currently, it still imports well over 60 per cent of its LPG demand.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

%d bloggers like this: