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DPR Issues directives to deepen gas usage as alternative fuel

The Department of Petroleum Resources (DPR) has issued directives to deepen the utilization of domestic LPG CNG, LNG and Autogas as alternative fuels for Nigerians.

The Director of Petroleum Resources, Mr. Sarki Auwalu stated this in his interaction with stakeholders in Lagos on Thursday.

He said that the directives were in furtherance of Federal Government’s aspirations to provide affordable fuels and ensure domestic gas penetration and expansion in Nigeria while entrenching price freedom for Nigerians.

He further said that DPR had carried out nationwide audit of all Retail Outlets and categorized them into three (3) – Categories 1, 2 and 3 – with a view to ascertain readiness for deployment of Add-On facilities for gas products.  He said that about 9,000 retail outlets which represents 27% of total number of retails outlets in Nigeria are in Category 1 and have been identified as suitable for immediate integration of Add-On facilities based on robust safety assessment and technical considerations by DPR.

He said that the Department has directed that all Category 1 Retail Outlet Operators are to commence immediate installation of modular Add-On facilities or full-scale stand-alone plants and update their DPR Operating licences accordingly.

He said all Operators of Retail Outlets in Categories 2 and 3 whose facilities do not meet the minimum requirements or do not have sufficient land area are encouraged to apply for stand-alone LPG, CNG, LNG or Auto Gas facilities (full-scale or modular) under an incentivized regulatory regime.

Sarki informed that DPR has also approved the deployment of skid-mounted modularized/containerized LPG/Autogas handling systems and other intrinsically safe systems for gas storage and handling to promote affordability, accessibility, and availability of the products.

He said the DPR as an  opportunity house and business enabler,  encourages investments in auto conversion, production of composite cylinders and ancillaries (valves, hoses, etc.) for domestic LPG, CNG, LNG and Autogas penetration and that he was confident that Retail Outlet operators and other investors will leverage on these opportunities in the domestic gas sector to grow their wealth and create employment for Nigerians.

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