Nigeria’s liquefied petroleum gas (LPG) supply is set to receive a major boost as StockGap Fuels Limited has commenced work on massive expansion of its storage facility in Port Harcourt, Rivers State.

Terminal Manager of StockGap Fuels Limited, Port Harcourt, Obioma Ebisike disclosed this during the Annual General Meeting (AGM) of the Nigerian Association of Liquefied Petroleum Gas Marketers held on Wednesday, September 28, 2022 in Port Harcourt, Rivers State.

In a chat with journalists on the sidelines of the event, Ebisike stated that the company intended to increase its storage capacity by 50 per cent by 2023 and double by 2024.

StockGap Fuels is a major player in the downstream sector of the energy industry and is involved in supply and distribution of refined petroleum products with emphasis on the white products such as LPG, PMS and DPK. It is the only company in the South-South that has a terminal that can receive LPG directly from the Nigeria Liquefied Natural Gas Limited (NLNG).

Ebisike stated that the investment the firm was making in the expansion of its facilities is because of the need to improve access to LPG and other petroleum products in Nigeria.

Stakeholders at the event commended the company for the massive investment it had already made by providing one of the largest LPG storage facilities in the country which is put at 15,000 metric tonnes.

Ebisike opined that investment in gas facilities was of absolute importance if the price of cooking gas was to be brought down in the country.

“Today, it is StockGap terminal that allows NLNG to deliver gas to customers in this region. We need more terminals in places Onitsha and so on. This will lead to a crash in price of LPG.”

Speaking at the event, Managing Director of Nigeria Liquefied Natural Gas Limited (NLNG), Dr. Philip Mshelbila, called for massive investment in the local gas sector, noting that limited facilities was a major reason for the high cost of cooking gas in the country.

He added that aside StockGap Fuels, NLNG is currently unable to supply to other firms in the South-South due to the absence of coastal terminals.

“Shortage of Jetty infrastructure especially outside Lagos is a major challenge in delivery of LPG to the Nigerian market. Sometimes vessels wait for weeks before they can discharge their content.  Limited storage capacity along the coast,”  

Mshelbila put domestic gas consumption at 1.2million metric tons out of which NLNG produces 400,000 metric tonnes, which is about 40% of local market requirements, hinting that his company intends to increase supply by removing factors that limited its capacity utilisation to between 60 to 70%.

The NLNG Managing Director hinged a lot of hope of NLNG Train 7, which he said was coming on stream within the next few years to improve supply of LPG by an additional 30 to 35%.