11 Plc Assures of Steady Supply of Domestic Cooking Gas

By June 6, 2018 Investment News

The management of 11 Plc formerly Mobil Oil Nigeria Plc has assured consumers of liquefied petroleum gas (LPG), commonly referred to as cooking gas of steady supply of the product as it recently launched various outlets in Lagos.

The company said it has opened 14 new operational sites simultaneously in Lagos state, while it aims to cover all retail outlets in the state before moving to commence work in other states of the federation.

The development is seen in same quarters being in line with the federal government’s initiative to grow and expand the local consumption of the LPG domestic gas in order to reduce environmental protection.

Speaking on how the company plans to execute its market strategy, managing director of 11 Plc, Tunji Oyebanji , said the company would bank on the current capacity of its sister compan, y NIPCO’s strong presence in the LPG market.

He noted that since NIPCO already have extensive assets and infrastructure within the various value chain from storage to distribution, it would only depend on that structure to hit the ground running.

According to him, NIPCO’s LPG operations consist a 10,500 metric tons (MT) storage capacity in Apapa, Lagos with a distribution chain comprising of 42 LPG delivery trucks with capacity ranging between 3 and 25 tons per delivery and various other investments at the retailing end of the business.

He said NIPCO currently has a technical supply agreement with Nigeria Liquefied Natural Gas (NLNG), the largest producers of LPG in the country which guarantees regular supply, stressing that with such support it can assure consumers of steady supply.

“11 Plc is taking the advantage of the government’s mandate through NNPC for rapid investment in growth and expansion in the LPG market considering the abundant reserves the country has. We have identified the huge potentials of growth in this industry and have brought on board our expertise of many years in the downstream sector,” he added.

He however noted the need for aggressive awareness on the misconceptions people have about the product being expensive and not affordable and safe, because clean energy was the way to go and it was trending in different developing countries.

In his keynote address, NNPC ‘s chief operating officer, Downstream, Henry Ikem- Obih, noted that though the country’s current LPG consumption of about 5,500 MT annually was not yet satisfactory, there was huge potential for the market because the World Bank statistics estimates that Nigeria’s consumption was about 3.2 million tons a year.

But in other to achieve this target, Ikem-Obih explained that an industry approach needs to be adopted so that there would be an increase in LPG penetration, hence the need for investments by the downstream sector in that direction.

Source: Leadership