The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, says the challenges in sourcing adequate supply of cooking gas has led to the increase in prices of the commodity.
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Kyari disclosed this during a working visit to the headquarters of the Department of Petroleum Resources (DPR) in Abuja on Tuesday.
“Today, this country is under supplied with gas. I can tell you that we are having difficulty feeding our network across the country with gas, every day, it is a trouble to deliver gas. Once your supply is weak, it will affect pricing”, the NNPC GMD said.
“The supply mechanism of our LPG is very weak, that is why we are collaborating extensively to make sure that we are able to extract LPG from our gas resources so that it is made available to the market. Once supply becomes high, definitely, the price will definitely be impacted.”
He, however, said the corporation is working with other sister agencies to make sure that more gas is available into the domestic market thus, making it close to homes.
He stated that its strategy to expand its network of availability would subsequently lead to gas directly delivered to homes of end users.
He said: “If we do this, all cylinders will not be of any use. That is why I don’t see them used in many developed countries. When we are able to power thermal gas plants across the country and very close to the users, ultimately, homes will be run with electric cookers and utensils and that way, you will have less need for cylinders. We are transiting and we will continue to add more volume into the market so that we bring down the prices.”
He explained that the excess availability of the commodity would also aid in stabilising power supply and distribution in the country as thermal plants will supply power generating companies’ gas which are affordable and accessible.
In his remark, the Director/CEO of DPR, Engr Sarki Auwalu, noted that the increase in availability in gas would engender job employment and help the country to have energy security.
He vowed to maintain the cordial relationship among the two agencies which would enable the oil sector to grow.
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