THE Federal Government has pointed to massive investment in technology for development of the Liquefied Petroleum Gas, LPG, market in Nigeria.
Putting current utilization level in Nigeria at nine percent, it says LPG, otherwise known as cooking gas, can make serious inroad in the society with adequate technology investments through the value chain.
It also canvassed for investment in support services to discourage the flooded illegal activities in the retail segment of the LPG market.
While speaking on the way forward to unlock the potentials in the LPG market at the 7th Annual LPG Conference and Exhibition, held in Lagos, the Programme Manager, National LPG Expansion Implementation Plan (Office of the Vice-President), Dayo Adeshina, stated that the sector was in need of potential development in technology to unlock the gas sector of the country’s economy.
He stated: “Another development needed to unlock the LPG potentials is technology which is going to play a big part in the sector going forward.
“In my visit to Countries, specifically on LPG, one thing that is common from most of these developed LPG market is the establishment of gas shops in areas that you don’t have proper brand distribution channels. But that is not the case in Nigeria. In real terms can I pick up a phone and call a dealer to deliver LPG to homes.
“Really, how do you pay N3.5 million as rent for house and you are still carrying cylinders. What happened to reticulation? Why can’t you pipe into that home and have a pre-paid meter? The reason why that is not happening is because we don’t have a building code on that. An estate should have a tank and then you pipe to each home and that is the way it should be.
On distribution, he noted that logistics and distribution pose good opportunities for the LPG market, saying, “Why can’t we have terminals in different places where they are taking barges to go and deliver. We should look at submarines transportation in terms of opportunities for the LPG aswell.”
He added that the market was in need of support services. “One should be able to send a text to suppliers and they would track the supplies. Somebody needs to start developing those telemetric in the port. You can monitor and find out when the delivery is short.
“We estimated that this market is a $10 billion market and the support service is a key to developing the industry.