By Akinola Ajibade
Barring any hitches, marketers would soon avail themselves of the N200bilion gas utilisation fund, set aside for them by the Federal Government.
The government will disburse the fund to marketers through the Central Bank of Nigeria (CBN) in the next six months.
Speaking during the virtual presentation organised by the National Association of Energy Correspondent (NAEC), in Lagos, recently, the Managing Director, RainOil Limited, Dr Gabriel Ogbechie, said the fund would help in deepening the use of gas, especially Compressed Natural Gas(CNG) in Nigeria.
He said $600billion is
required to deepen gas utilisation in the country.
The presentation is titled:
‘Deregulation and Sustainable Energy Future Through Gas’.
According to him, marketers would use the fund to build Liquiefied Natural Gas(LPG) storage facilities and Skid Gas Plants.
Others are construction of LPG cylinder companies, provision of LPG filling facilities and others.
He said: ” Nigeria requires $600bilion worth of investment in gas and allied areas.
“Marketers would leverage on the fund to provide LPG trucks, filling plants among others, in order to ensure gas utilisation and adoption in the country.”
He said the fund would assist in deepening the use of autogas, which is becoming a fastest growing part in the
nation’s gas industry.
He said the Nigerian National Petroleum Corporation (NNPC) has been the sole importer of Petroleum Premium Spirit (PMS) in the country.
” The government paid N725 billion on petrol subsidy in 2019 and spent N101.65 billion in subsidy in the first quarter of 2020.
Adding that: Subsidy was discontinued in March 2020, by the Petroleum Product Pricing Regulatory Agency(PPPRA) following the global crash in the price of crude oil,while the price recovery witnessed recently has resulted in the increase in the pump price of petroleum, a development, caused by the rise in the landing cost of crude oil.”