NCDMB Hails NLNG’s Award of LPG Ship Contract to Local Company
The Nigerian Content Development and Monitoring Board (NCDMB) has commended Nigeria LNG Limited (NLNG) for awarding the contract for the provision of a new build Liquefied Petroleum Gas (LPG) ship to a fully indigenous company, E.A. Temile Development Company. The vessel will serve as the chartered ship by which the NLNG will deepen the delivery of LPG, commonly known as cooking gas into the domestic market for improved availability and scale. In line with the contract, E.A. Temile Development Company signed an agreement on Friday in London with Hyundai Mipo Dockyard, South Korea for the construction of the new LPG vessel.
The Executive Secretary NCDMB, Engr. Simbi Wabote was a guest at the ceremony and described NLNG’s award of contract to the local firm as a confidence building move and a bold endorsement of local capacities and capabilities. He added that the development was a manifestation of the progress that had been made in the local content journey and challenged other industry stakeholders to come up with similar initiatives. “I expect several operators and service providers to get inspirations from this milestone event and see the possibilities in our local content practice rather than the difficulties.” He also congratulated E.A. Temile Development Company for clinching the important contract and breaking the stereotyped glass ceiling that had often stopped indigenous companies. He further charged the company to keep within the terms of the contract and deliver safely.
Speaking further, Wabote demanded that Hyundai must look seriously at domiciling key aspects of its activities in-country. “There is a lot of repeat business and the opportunity is huge with the massive infrastructural deficits in the LPG values chain. You should partner with local businesses for increased in-country value addition especially in the area of maintenance of vessels. He stressed that NLNG’s efforts to deepen the penetration of cooking gas tallies with NCDMB’s interventions to utilize oil and gas resources to improve the quality of lives of Nigerians.
The Executive Secretary regretted that the current level of LPG penetration in the country was still very low, at roughly 1kg per capita consumption compared to Ghana at 4.7kg, Senegal at 9kg, and Egypt at 85kg. “The addition of this vessel will surely address part of the challenges bedeviling LPG utilization in the country. It is expected that the NLNG market share of domestic LPG will increase significantly from the current level of 40 percent and ultimately lead to stoppage of importation of LPG into the country.” He also stated that NCDMB had commenced discussions with some investors to address challenges around accessibility to LPG. “We are looking at initiatives around bulk storage depots and establishment of LPG cylinders manufacturing companies including provision of support for re-opening of moribund ones.”
He noted that one of such in-country facilities have an installed capacity for the production of one million 12.5kg LPG cylinders per annum and 400 gas cookers daily and can provide 1000 jobs at full capacity, yet it was shut down, leading to a deluge of imported cylinders and accessories. “We will play our part to reverse this trend,” he promised.