Group Managing Director of the Nigerian National Petroleum Corporation, Mallam Mele Kyari, has attributed the hike in prices of cooking gas to challenges being faced in sourcing adequate supply of the commodity.
He also spoke on an imminent plan to phase out gas cylinders and directly supply homes and other end users with the commodity as part of measures to crash the prices and make it continuously available.
He stated this during a 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.
He also 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 the 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 was 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 the 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 would supply power generating companies’ gas which are affordable and accessible.
Director/CEO of the DPR, Sarki Auwalu, noted that the increase in availability in gas would engender job employment and help the country to have energy security.
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