…Opens 14 new plants
Adewale Sanyaolu
11 Plc, formerly Mobil Oil Nigeria Plc, as part of efforts to deepen the use of Liquefied Petroleum Gas (LPG) popularly called cooking gas, has increased its investment by opening 14 new plants.
The latest investment decision, according to the Managing Director of the company, Mr. Tunji Oyebanji, was due to the current capacity of its sister company, NIPCO’s strong presence in the LPG market since they have extensive assets and infrastructure within the various value chain from storage to distribution.
He said NIPCO’s LPG operations consist of a 10,500 metric tonnes (MT) storage capacity in Apapa, Lagos, with a distribution chain comprising 42 LPG delivery trucks with capacity ranging between three and 25 tonnes per delivery and various other investments at the retailing end of the business.
Oyebanji who further reinforced steady supply of the product noted that NIPCO has a technical supply agreement with Nigeria Liquefied Natural Gas (NLNG), the largest producer of LPG in the country, which guarantees regular supply.
He disclosed that 14 other sites have been opened simultaneously in Lagos State and it’s the company’s aim to cover all retail outlets in the state before moving to commence work in other states of the federation.
“11 Plc is taking advantage of government’s mandate through NNPC for rapid investment in growth and expansion in the LPG market considering the abundant reserves the country has. We have identified the huge potential of growth in this industry and have brought on board our expertise of many years in the downstream sector,” he added.
He, however, noted the need for aggressive awareness on the misconceptions people have about the product being expensive and not affordable and safe, because clean energy is the way to go and it is trending in different developing countries.