Butane Energy And NCDMB To Launch Four Additional LPG Plants In Northern Nigeria.

By Oluwabukola Jimoh ــ Last Update 13 July 2024

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In a concerted effort to promote Liquefied Petroleum Gas (LPG) as a cleaner and more cost-efficient fuel for cooking in Nigeria, Butane Energy Limited and its joint venture partners, the Nigerian Content Development and Monitoring Board (NCDMB), have set ambitious timelines for the completion and inauguration of additional LPG plants in four northern states.

With the 100-ton LPG plant in Katsina already operational, the company has announced that the Kaduna plant will be inaugurated by the end of this month or the beginning of August. The Bauchi plant is scheduled for unveiling between September and October this year, while the Kano facility is expected to be operational by the first quarter of 2025. Butane Energy Limited's Executive Chairman, Mr. Isa Inuwa, revealed that plans to construct another LPG plant in Abuja are on track, with all necessary equipment already imported and the company currently working to acquire land.

Established in 2017, Butane Energy focuses on LPG storage, trading, and marketing, with distribution assets in Northern Nigeria. The NCDMB's equity investment aligns with the agency’s mission to support local firms adding value to the country’s oil and gas industry and its linkage sectors. According to Inuwa, the five plants will have a total storage capacity of 1000 tons, and the company boasts a combined transport capacity of about 180 to 200 tons for movement at any time using trucks.

"We are commissioning the Kaduna facility at the end of this month or the beginning of August. We have informed the NCDMB, inviting them to participate as they have in the past," Inuwa stated. "For Bauchi, we aim to commission in September or early October, with construction currently underway. Construction for the Kano plant will commence around October, with commissioning slated for the first quarter of 2025."

In Abuja, while awaiting land acquisition for their plant, Butane Energy is exploring options to lease an existing facility around the Federal Capital Territory (FCT) to commence trading cooking gas. By the first quarter of 2025, the executive chairman expects Butane Energy to have at least four of its own plants and one on lease operational, significantly enhancing LPG availability for users.

Inuwa highlighted that the company offers customized cylinders branded with the Butane Energy name and a range of accessories including pipes, regulators, and furnaces. To ensure consistent product availability, Butane Energy has registered as an off-taker with nine suppliers, including KSML, NaphGas, Nipco, PNG, NesoGas, NNPC Retail, NNPC Trading Limited, AA Rano, and Shafa.

On the job creation front, Inuwa noted that once all five plants are operational, Butane Energy will directly employ between 100 and 110 people, with an additional 150 to 200 indirect jobs. Looking ahead, Butane Energy plans to take a franchise from another company to promote Autogas, enabling the dispensing of autogas to motorcycles, cars, and tricycles at all their plants.

"Now, we are contemplating taking a franchise to enable Autogas to be dispensed to motorcycles, cars, and tricycles in all our plants. We are currently in discussions and have not yet finalized," Inuwa concluded. This strategic expansion underscores Butane Energy's commitment to enhancing LPG accessibility and supporting Nigeria's transition to cleaner energy sources.

We at LPG in Nigeria feel that this strategic expansion of Butane Energy Limited, in partnership with the Nigerian Content Development and Monitoring Board (NCDMB), promises to significantly enhance the accessibility and affordability of Liquefied Petroleum Gas (LPG) across Nigeria, particularly in the northern states. The establishment of additional LPG plants in Katsina, Kaduna, Bauchi, and Kano, alongside plans for a new facility in Abuja, is set to create substantial economic benefits through job creation and infrastructure development. This initiative not only supports the government's drive to promote cleaner energy but also addresses critical energy needs in semi-urban and rural areas, reducing dependency on traditional biomass fuels and contributing to better health outcomes. The collaboration reflects a commitment to sustainable growth and the potential for public-private partnerships to drive significant advancements in Nigeria's energy sector.

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Oluwabukola Jimoh

Oluwabukola Jimoh is a dynamic academic writer and captivating energy blogger. She is able to delve into intricate subjects with an insatiable thirst for knowledge, crafting thought-provoking essays that engage and enlighten her readers.