Energy
NMDPRA Goes Hard on LPG Decanting, Sanctions Loom on Defaulters
Liquefied Petroleum Gas (LPG) retailers operating in Ogun State have been cautioned to desist from breaching safety regulations, through illegal decanting practices or be ready to face strict sanctions.
The caution was handed down by the Ogun State Coordinator, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Dr Akinyemi Atilola, during the authority’s first quarterly stakeholders’ engagement with LPG retailers in 2026.
Dr Atilola stressed that while retailers remain critical to the Federal Government’s gas expansion drive, safety must never be compromised.
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He said, “LPG retailers are key to achieving the Federal Government’s gas deepening agenda because they serve as the last-mile link to end users. However, this business must be conducted in strict adherence to safety standards and global best practices,” he said.
Speaking on the theme “Gas Deepening and Expansion: Hazards Associated with Gas Category D Business,” Atilola explained that LPG retailers fall under Category D operations, which are designed strictly for cylinder exchange commonly referred to as the drop-and-pick model.
He expressed concern that many operators have deviated from this model, engaging instead in decanting, the transfer of gas from one cylinder to another.
“What we observed, and what raised serious concern, is that some Category D operators are involved in decanting. This practice is highly unsafe and poses significant risks, not only to operators but also to customers, surrounding markets and the environment,” he warned.
According to him, decanting can result in overfilled cylinders, gas leaks, fire outbreaks and even explosions.
“Category D is not meant for decanting. It is specifically for a system where customers drop empty cylinders and pick up already-filled ones. Any deviation from this constitutes a safety breach,” he added.
Dr Atilola made it clear that the authority would no longer tolerate violations, noting that enforcement actions, including sealing of outlets would be intensified.
“We will not pretend not to see breaches. The authority will not hesitate to sanction erring operators. Already, about five outlets were sealed last year, and we will continue to shut down non-compliant facilities,” he stated.
He disclosed that Ogun State has over 600 LPG cylinder operators, emphasising the need for strict compliance across the board.
While reiterating the authority’s commitment to enforcing regulations, Atilola noted that NMDPRA is also mindful of the economic importance of the sector.
“We recognise that many people depend on this business for their livelihood. We are not out to take away their means of income, but we cannot allow unsafe practices. Our goal is to educate and guide operators toward safe and compliant operations,” he said.
He added that operators willing to comply with established guidelines would be duly licensed.
“If they follow the rules, we are ready to license them. But unsafe operations will not earn our approval,” he stressed.
The NMDPRA boss also raised concerns over the indiscriminate siting of LPG businesses in residential areas, warning that such practices would not be tolerated.
He outlined strict requirements for siting gas facilities, including minimum space, ventilation standards, and storage limits.
“There must be at least a three-by-four metre space, proper ventilation, and operators must not store more than 500 kilograms of gas. Most importantly, such facilities must not be located within residential buildings,” he said.
He condemned unsafe storage practices such as keeping gas cylinders in living rooms or near sensitive locations.
“Storing gas under beds, inside homes, or near schools and hospitals is strictly prohibited. Such practices endanger lives and will not be approved,” he warned.
In their remarks, Chairman of the LPG Retailers branch of NUPENG in Ogun State, Mr Ogunkoya Abiodun, alongside the Chairman of the Nigeria Association of Liquefied Petroleum Gas Marketers (NALPGAM), Engr Raifu Oyedele, commended NMDPRA for its support toward the growth of the gas sector.
They, however, called for increased collaboration, particularly in training and continuous sensitisation of operators.
A 10-point communique issued at the end of the engagement emphasised collective responsibility for safety in the sector.
The stakeholders unanimously agreed that any operator found engaging in unsafe practices, especially decanting, should face appropriate sanctions.
The engagement forms part of NMDPRA’s ongoing efforts to promote safe LPG usage while advancing Nigeria’s gas expansion agenda under the Federal Government’s “Decade of Gas” initiative.
Oil output from the United Arab Emirates (UAE) rose to record levels in September, underscoring its resilience even amidst the Middle East crises and liberation from OPEC+ limits.
The International Energy Agency (IEA) issued the data in its monthly report, adding that Abu Dhabi raised total oil production, including condensates, by 400,000 bpd to 5.3 MMbpd.
According to the IEA, the UAE bolstered crude output to more than 4.4 MMbpd, nearing its maximum capacity, which surpasses the previous highs for total oil in August, and crude oil in June.
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The UAE has been one of the most successful among regional producers in restoring flows through the Strait of Hormuz, by drawing on a fleet of tankers to discreetly shuttle cargoes through the chokepoint and then transfer them onto other vessels. In addition, the country’s decision to leave the Organization of the Petroleum Exporting Countries (OPEC) as of May has freed it from the group’s output caps, a source of frustration for years.
Its gains contributed to a wider recovery in flows from Gulf producers, which reached more than 75% of pre-war levels in September, led by Saudi Arabia, according to the Paris-based IEA.
Still, it’s unclear how far the regional rebound has withstood a new wave of Iranian attacks on tankers transiting Hormuz, and escalating hostilities carried out by the Houthi rebel faction in Yemen.
The UAE depleted its observable above-ground inventories at a record pace of more than 270,000 bpd in September, drawing them to an all-time low, according to the IEA.
Africa’s gas potential and strengthening the continent’s energy security would take centre stage at the Africa Interviews Sustainability Forum (AISF 2026) scheduled for Wednesday, October 21, in Lagos.
Biztellers reports that top officials of Oando Plc and Renaissance Africa Energy Company Limited, Ayotola Jagun and Tony Attah, respectively, will be leading other industry leaders in the discussion.
Jagun, Oando’s Executive Director, Chief Corporate Services and Sustainability Officer, and Attah, Managing Director and Chief Executive Officer of Renaissance Africa Energy Company Limited, will participate in a panel discussion alongside Lamé Verre of Lean In Equity & Sustainability (LiNES) and Dapo Filani, Managing Director and Chief Executive Officer of Waltersmith.
The panel will examine Africa’s energy security and the role of natural gas in the continent’s energy transition.
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The forum, launched in 2024, is holding its third edition under the theme, “Energy Security and Africa’s Energy Transition: Defining the Role of Gas.”
This year’s gathering will explore how African countries can strengthen energy security, attract investment in gas development and balance growing energy demand with sustainability objectives.
Verre, a London-based energy and sustainability executive, is Co-founder and Chair of the Advisory Board of LiNES. She will bring her international experience in sustainability, decarbonisation and low-carbon development to the discussion. Her work spans low-carbon initiatives across sectors, including marine, the built environment, forestry, land and agriculture.
Jagun brings extensive experience in corporate governance, regulatory compliance, enterprise risk management and sustainability. Her contribution will provide a corporate sustainability and governance perspective on the relationship between energy development, environmental responsibility and Africa’s transition priorities.
Attah, a former Managing Director and Chief Executive Officer of Nigeria LNG Limited, has extensive experience in the oil and gas industry, particularly in natural gas development and major energy operations.
Filani leads Waltersmith, an indigenous Nigerian energy company with interests across the oil and gas value chain. His participation will highlight the role of indigenous energy companies in strengthening domestic energy capacity and supporting economic development.
The panel will consider what is required to unlock greater investment in Africa’s gas sector, how natural gas can support industrial growth while advancing sustainability, and what practical measures could help translate the continent’s energy ambitions into tangible outcomes.
Beyond the panel discussion, AISF 2026 will provide opportunities for engagement among senior energy executives, policymakers, investors and business leaders.
Oil prices on Monday went south, after crude exports from the Middle East rose above pre-war levels, while the Group of Seven nations pledged to release 100 million barrels of crude and diesel from emergency reserves.
Brent crude futures fell by $1.20, or 1.17 percent, to $101.05 a barrel, while West Texas Intermediate crude declined by $1.16, or 1.27 percent, to $89.95 per barrel, according to Reuters.
Middle Eastern crude exports exceeded pre-war levels on four of the seven days in the final week of September, shipping data showed, despite attacks on vessels passing through the strategic Strait of Hormuz.
The increase in exports, combined with the G7’s planned release of emergency stocks, helped put downward pressure on crude prices.
The G7 countries agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves and pledged to refrain from energy export restrictions following pressure from United States President Donald Trump.
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However, the scale of the additional supply remained uncertain.
IEA Executive Director, Fatih Birol, said last week that member countries had already released about two-thirds of the 400-million-barrel volume.
Meanwhile, supply concerns remained elevated as fighting continued across parts of the Middle East.
Saudi Aramco Chief Executive Officer, Amin Nasser, also warned that crude oil and refined fuel supplies were expected to remain stretched.
He said rebuilding global stockpiles after emergency withdrawals could take two years.
The United States Strategic Petroleum Reserve fell to 283 million barrels last week, its lowest level since October 1982, according to data from the US Department of Energy.
The supply outlook was further complicated by the continuing conflict involving Saudi Arabia and Iran-backed Houthi forces in Yemen.
Yemeni government forces attacked Houthi positions in the Dhubab district overlooking the Bab el-Mandeb Strait on Monday, according to two military sources.
The development came a day after the internationally recognised government launched a campaign to retake Houthi-held territory.
Meanwhile, OPEC+ postponed a review that would determine its 2027 oil output quotas after the war involving Iran disrupted projects aimed at expanding production capacity across the Middle East.
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