The document summarizes the journey of the Domestic LPG Promotion Scheme in Nigeria so far. It outlines the initial objectives of increasing domestic LPG supply and reducing prices. It discusses achievements like lower retail prices and sustained supplies. It also examines challenges such as berthing delays, market insensitivity, lack of cylinders, and rogue traders. The presentation proposes the "LPG Almighty Formula" of massively increasing cylinders, conducting widespread awareness campaigns, and strengthening regulation to exponentially grow the LPG market. It highlights the roles that can be played by the Nigerian LPG Association and government initiatives to further develop the LPG sector.
This paper talks about the impact of the Nigerian Gas Flare Commercialization Program on the Domestic gas market. For more information on Market access & Research into the Nigerian/Africa energy market. contact us at
www.brockvilleinvestments.africa
info@brockvilleinvestments.africa
This training course has been designed so as to give the interested parties an introduction to small scale LNG design and operation.
- Understand the sources and nature of LNG supplies
- Grasp the significant of key technical facts
- Acquire in depth knowledge of the elements in the LNG Chain
- Develop and deep understanding of small scale Liquefaction cycles
- Understand how small scale shipping operates
- Appreciate the different market segments for small scale LNG including Marine, Road, Mining & Construction and Power
- Learn how to develop a small scale LNG business
- Appreciate the commercial aspects of the LNG business
A presentation by Chris Bredenhann, southern African energy leader, PWC South Africa. Delivered during African Ports Evolution 2015 in Durban, South Africa.
More like this on www.transportworldafrica.co.za
Obijackson Group is an extensive business conglomerate with diverse cross-sector interests. It operates on three continents.
The Obijackson Group, one of the fastest growing business conglomerates in Sub Saharan Africa, has made vast investments in its operating divisions such as: Oil and Gas Exploration and Production, Pressure Vessel Fabrication, Power Generation, Dredging and Marine Logistics, Aviation, Civil and infrastructural construction, Real Estate and Telecommunications.
Obijackson Group employs over 3,000 people, with operations located across Nigeria, the United States of America and the United Kingdom.
Regardless of its size, the Obijackson Group is guided by sound corporate governance with a culture of integrity, transparency, accountability, innovation and excellence.
The Group aims to enhance long term value and prosperity by means of dynamic growth, selective acquisitions and exemplary management of resource
OTHER MEMBERS
Championing global standards of quality in the Nigerian industries is at the heart of the Obijackson Group . The structure of the Group consists of Strategic Business Units
(SBUs) that offer a broad range of services.
The Obijackson Group comprises of: Nestoil Ltd., Energy Works Technology Limited, B&Q Dredging Limited, Gobowen Exploration and Production, Century Power Generation Limited, Time Power Global Dynamics Limited, IMPAC Oil & Gas Engineering, Hammakopp Consortium Limited Netav Services Limited, Scorpio Drilling International, Shipside Drydock Limited and MyTelecoms Limited.
GO FOR SPEED IS A GREAT SLIDE PREPARED BY A GROUP IN THE K.N.U.S.T WHICH IS ONE OF THE GREAT UNIVERSITY IN GHANA .IT WAS MADE TO BE PRESENTED AS AN ASSIGNMENT IN THE DEPARTMENT OF BUILDING TECHNOLOGY BY STUDENTS IN Q.S.C.E FINAL YEAR CLASS.
This paper talks about the impact of the Nigerian Gas Flare Commercialization Program on the Domestic gas market. For more information on Market access & Research into the Nigerian/Africa energy market. contact us at
www.brockvilleinvestments.africa
info@brockvilleinvestments.africa
This training course has been designed so as to give the interested parties an introduction to small scale LNG design and operation.
- Understand the sources and nature of LNG supplies
- Grasp the significant of key technical facts
- Acquire in depth knowledge of the elements in the LNG Chain
- Develop and deep understanding of small scale Liquefaction cycles
- Understand how small scale shipping operates
- Appreciate the different market segments for small scale LNG including Marine, Road, Mining & Construction and Power
- Learn how to develop a small scale LNG business
- Appreciate the commercial aspects of the LNG business
A presentation by Chris Bredenhann, southern African energy leader, PWC South Africa. Delivered during African Ports Evolution 2015 in Durban, South Africa.
More like this on www.transportworldafrica.co.za
Obijackson Group is an extensive business conglomerate with diverse cross-sector interests. It operates on three continents.
The Obijackson Group, one of the fastest growing business conglomerates in Sub Saharan Africa, has made vast investments in its operating divisions such as: Oil and Gas Exploration and Production, Pressure Vessel Fabrication, Power Generation, Dredging and Marine Logistics, Aviation, Civil and infrastructural construction, Real Estate and Telecommunications.
Obijackson Group employs over 3,000 people, with operations located across Nigeria, the United States of America and the United Kingdom.
Regardless of its size, the Obijackson Group is guided by sound corporate governance with a culture of integrity, transparency, accountability, innovation and excellence.
The Group aims to enhance long term value and prosperity by means of dynamic growth, selective acquisitions and exemplary management of resource
OTHER MEMBERS
Championing global standards of quality in the Nigerian industries is at the heart of the Obijackson Group . The structure of the Group consists of Strategic Business Units
(SBUs) that offer a broad range of services.
The Obijackson Group comprises of: Nestoil Ltd., Energy Works Technology Limited, B&Q Dredging Limited, Gobowen Exploration and Production, Century Power Generation Limited, Time Power Global Dynamics Limited, IMPAC Oil & Gas Engineering, Hammakopp Consortium Limited Netav Services Limited, Scorpio Drilling International, Shipside Drydock Limited and MyTelecoms Limited.
GO FOR SPEED IS A GREAT SLIDE PREPARED BY A GROUP IN THE K.N.U.S.T WHICH IS ONE OF THE GREAT UNIVERSITY IN GHANA .IT WAS MADE TO BE PRESENTED AS AN ASSIGNMENT IN THE DEPARTMENT OF BUILDING TECHNOLOGY BY STUDENTS IN Q.S.C.E FINAL YEAR CLASS.
1. DLPG SCHEME: THE JOURNEY
SO FAR!
Presentation By Mr. Norbert Shialsuk to the 1st
Nigerian LPG Summit Organized by The
Department of Petroleum Resources on the 12th &
13th October 2009 @ ICC Abuja
2. CONTENT
OBJECTIVE AT BEGINNING OF SCHEME
Achievements
Challenges
Solution: LPG Almighty Formula
Role of NLPGA
Way Forward
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3. OBJECTIVES OF THE DLPG SCHEME
Supply LPG From Nigerian Production in Bonny
Which was impossible prior to now
Bridge Supply Logistic Gap btw Bonny & Lagos
Eradicate Scarcity of LPG
Reduce Hiked Prices; Make More Affordable
Improve Infrastructural Imbalance
Reintroduce LPG and Create Awareness
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4. BRIDGING THE LOGISTIC GASP…
Bonny River
Terminal
BW Saga in STS with
LPG/C Blue Gas
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5. Objective at beginning of Scheme
ACHIEVEMENTS
Challenges
Solution: LPG Almighty Formula
Role of NLPGA
Way Forward
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6. ACHIEVEMENTS
Retail Price Dip – from N10,000 > 2200 per
12.5kg
Market Stability
Sustained Supplies; cutting scarcity
Restored Confidence attracting New Investments
in LPG
New Filling Plants Springing Up
Old Plants Revived
Customers more sensitized; Expectant
Fruitful Partnership between NLNG and the 6
Off-takers
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7. Objective at beginning of Scheme
Achievements
CHALLENGES
Solution: LPG Almighty Formula
Role of NLPGA
Way Forward
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8. CHALLENGES: BERTHING DELAYS
STS
OPS
VESSEL LOAD
DATE
DISCHA
RGE
DATE
TIME INV.
DATE
20 Blue Gas 03-10-08 17-10-08 14 Days 02-11-09
21 Blue Gas 18-10-08 29-10-08 11 Days 17-11-09
22 Blue Gas 29-10-08 14-11-08 14 Days 28-11-09
23 Blue Gas 18-11-08 25-11-08 8 Days 17-12-09
27 Mayfair 20-03-09 08-04-09 20 Days 19-04-09
28 Mayfair 21-04-09 14-05-09 24 Days 20-05-09
29 Super
League
08-05-09 11-06-09 34 Days 07-06-09
30 Mayfair 27-05-09 29-06-09 33 Days 26-06-09
31 Super
League
20-06-09 20-08-09 61 Days 19-07-09
36 Mayfair 29-07-09 31-08-09 33 Days 28-08-09
40 Mayfair 03-09-09 17-09-09 15 Days 02-10-09
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9. CHALLENGES: MARKET INSENSITIVITY
OPIS Mont Belvieu Upward Trend
Local Ex-Depot Prices Remain Constant
Retail Prices on an Upward Trend due to
speculation by Rogue Traders/Distributors
Off-takers taking all the RISKS; Rogue Street
Traders Taking all the PROFIT (See next Slide,..)
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10. LAST MILE BOTTLENECK = CYLINDERS
However, bottleneck is
no in cylinders:
Even though Offtakers
sell ex-Apapa depot at
N1,200 and ex-plant at
N1,500 – N1,750, road
side retailers still sell
at approx. N2,500 –
N3,500 per cylinder!
Roadside and Retail
Gross Margins are
70–100% Today!!
11
Cylinder Price Ex Plant
12. CHALLENGES: CYLINDERS > DEPTH
Nigeria’s Population: 140 million
Nigeria’s Cylinder Population
All sizes: Less than 1 million (Approx. 500,000)
Capacity 500,000cylinders x 12.5kg = 6,250,000kg
6,250,000kg = 6,250tons
Annual Capacity = 6,250t * 12months = 75,000tons
(Assuming Users fill once a month)
Shallow Market
Focus Investments on Cylinders; Distribution
To ACHHIEVE 1MTPA? NIGERIA
REQUIRES 40M CYLINDERS!
Equivalent to N200bn
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13. MARKET DEPTH: SA
S. African Population: 25 million
S. Africa cylinder population
Large Cylinders (9kg & above): 5.5 million
Small Cylinders (below 6kg): 7 million
TOTAL 12,5M CYLINDERS
Local Refinery Supply 370,000tons in 2007
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14. CHALLENGES:
ROGUE TRADERS
Short Filling
Rusty Cylinders
Price Hiking
Shoddy Practices: HSE Concerns
Regulatory Oversight
Not Adequate at this level
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15. CHALLENGES: ILIQUIDITY
Constrained Cash Flows Due to Huge Logistic
Costs
Limited Cash Available for Investment in
Infrastructure
No Bank Funding
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16. CHALLENGES: OTHER
Disincentive to Investment
Dual licensing/Regulatory Agencies – DPR/SON
SON Certification Hurdles
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17. Objective at beginning of Scheme
Achievements
Challenges
SOLUTION: LPG ALMIGHTY FORMULA
Role of NLPGA
Way Forward
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18. LPG ALMIGHTY FORMULA…,
C A R X2
Where:
C = Cylinders
A = Awareness
R = Regulation
X2 = Exponential Growth in LPG
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19. Massive Injection of Cylinders
40 Million Cylinders Required to reach 1MTPA
Private Investment or
Government Funding
IF Private Investment
Then Specialization of Cylinder Valves
Protection of Investment; Guaranteed ROI
IF GOVT. FUNDING
Then Standard Valves Remain
NLPGA Recoups Cylinder Charge From Members
Remittance to Government per cylinder sold
C
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20. ASIAN EXPERIENCE: “C”
CYLINDER EXCHANGE PROGRAM
INDONESIA; kerosene-LPG-conversion program
3kg Introduced since 2007 = 37.44million Units
Govt. Aim = To Reduce Large Kerosene Subsidy
Target = Household Consumers and Small-and-Medium
Businesses (UKM).
Equivalent Kerosene Withdrawn = 3.26m kilolitres
Target Distribution exceeded by 10%
PHILIPINES;
6million defective Cylinders Confiscated and Replaced at
Subsidized Rate to Rural Poor
Exclusive filling of Cylinders owned, marked/branded
permanently by Marketer
Cylinders funded through LPG revenue generated from VAT
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21. Massive Awareness Campaign: TV; Radio; Print!
Campaign must be nationwide
Costly Advertising; Huge Budget
Promoting LPG as SAFE; AFFORDABLE;
ENVIRONMENTALLY FRIENDLY
Public Education on S.A.F.E. USAGE
Individual Company’s efforts are limited and
focused on target markets where interest lies
Govt. has General Public Interest
Public ‘trusts’ the Government; so Govt. Leads
Education in LPG
A
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22. LPG
INDUSTRY
DPR
• Single Regulator to
Supervise Sector;
Drive Policy; Enforce
SAFE Standards;
license
• NLPGA To Develop
Standards in line with
WLPGA Codes; Train;
Certify Specialists;
Certify S.A.F.E
Appliances &
Distributors; Advise
DPR
• NLPGA:DPR Must
Work Hand in Hand
• Regulation is KEY to
Growth
NLPGA
R
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23. AND ALL OTHER THINGS SHALL BE ADDED,…
If Our C+A+R goes well then, Investments Will
flow into;
Haulage Trucks (No Roads)
Filling Plants
Appliances and accesories
Terminals; etc..
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24. Objective at beginning of Scheme
Achievements
Challenges
Solution: LPG Almighty Formula
ROLE OF NLPGA
Way Forward
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25. ROLE OF THE NLPGA: SA EXPERIENCE
Develop Standards and Codes that are consistent
& Evolve with Technology
Establish Training Institutes and Certifying All
Trained LPG Specialists for the Industry
Certify LPG Distributors
Certify SAFE Cylinders & Appliances
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26. SA LPGA EXPERIENCE:
CERTIFICATION & TRAINING
CERTIFICATE of
COMPLIANCE
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27. SA EXPERIENCE: DEALER CERT
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28. SA EXPERIENCE – ROLE IN PUBLIC
AWARENESS
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29. SA EXPERIENCE: LPG EDUCATION
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30. Objective at beginning of Scheme
Achievements
Challenges
Solution: LPG Almighty Formula
Role of NLPGA
WAY FORWARD
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32. CHINESE EXPERIENCE
Guangdong undertook significant private
investment in LPG Investment
Government funded 35m Cylinder Exchange
Population: 120m
LPG Imports / Consumption
Guangdong
imports/
consumes as
much LPG in a
month as Africa
does in a Year!!
Type of Investment Number off Capacity
Primary Terminals 7 487,000 tonnes
Secondary Terminals 35 98,000 tonnes
Bottling Plants 690 140,000 tonnes
1991 2007
413,000 tonnes 6 million tonnes
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33. WHAT THE OFFTAKERS ARE DOING?
Le Global C-Gas
Cylinders; Distribution
Chimons Gas
Trucks; Cylinders; Terminal
Harig - Gas Club
Cylinders; New Filling Plants; Distribution; LPG
Terminal
Linetrale – Gas Terminalling
New FILLING Plants; LPG Terminal
Hyson – Algasco/Navgas
New 8,000Ton Terminal ETC Q1 2010
All are individually designing Awareness
Campaigns
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34. WHAT THE GOVT. SHOULD BE DOING?
New Fiscal Regime
Cylinders (Exchange) Fund Program
Mass Awareness Campaign (NOA)
Outlaw Firewood
Unification of Regulation Codes; One Supervisor
as against 2
NLNG Local Pricing of LPG
Avoid subsidies to competing Fuels
Removal of 5% VAT on Domestic LPG (Imported
LPG is not taxed!)
Removal of 30-40% Duty on Steel Plate for
Cylinders
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