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.
In what is expected to provide investors and industry stakeholders with a detailed overview of Nigeria’s energy assets and opportunities, her first comprehensive Gas and Power Infrastructure Map will be unveiled at the 25th edition of NOG Energy Week.
It was gathered that the publication, developed by the Gas for Africa programme in partnership with NNPC Limited, will be launched during the annual energy conference in Abuja and is being positioned as a major step towards improving transparency and investment decision-making in Nigeria’s gas and power sectors.
Industry stakeholders have long cited the lack of consolidated and reliable infrastructure data as a major challenge to attracting investment into the sector. The new map seeks to address that gap by providing a single source of information on Nigeria’s gas and power infrastructure, including pipelines, gas processing facilities, power generation assets, LNG terminals and key transmission networks.
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Alongside the infrastructure map, organisers will also release a comprehensive report on Nigeria’s gas sector, which they describe as the most extensive industry intelligence publication ever produced on the country’s gas value chain.
The report examines developments in the sector since 2020 and covers key areas such as the NNPC Gas Master Plan 2026, gas reserves and production trends, pipeline infrastructure, capacity challenges, compressed natural gas (CNG), piped natural gas (PNG), liquefied natural gas (LNG) markets, gas-to-power projects and gas-based industrialisation.
According to the organisers, the publication provides an end-to-end assessment of Nigeria’s gas industry and offers critical insights for investors, policymakers and industry operators.
The launch comes at a time when global energy markets are undergoing significant shifts, driven by geopolitical tensions and increasing demand for alternative and secure energy supplies.
Organisers noted that Nigeria is strengthening its position as a major energy player, supported by rising crude oil production, implementation of a new Gas Master Plan and expanding refining capacity.
They said the infrastructure map and accompanying report are expected to help convert investor interest into concrete projects by providing accurate data on existing assets, infrastructure gaps and future opportunities across the sector.
Attendees at NOG Energy Week will be the first to access both publications as government officials, energy executives, investors and industry leaders gather in Abuja for the five-day event.
The conference is also expected to feature investment discussions, joint venture announcements, memorandum of understanding signings and project partnerships aimed at advancing Nigeria’s energy development agenda.
With preparations gathering momentum ahead of the event, organisers said NOG Energy Week 2026 will provide a platform for stakeholders to examine the future of Nigeria’s energy sector and its role in Africa’s broader energy transition and industrial growth.
OPEC+ ministers decided Sunday to increase oil quotas by a total 188,000 barrels per day for July, in a move analysts said would be unlikely to have an impact on prices sent higher by the Mideast war.
Jorge Leon, analyst at Rystad Energy, said ahead of the expected increase that it “means very little while the Strait of Hormuz remains closed”.
He added: “The market is not short of quota announcements; it is short of physical barrels that can actually move. In that sense, the 188,000 barrels per day increase would be more of a policy signal than a real supply boost.”
The hiked production output was agreed Sunday in a video meeting of oil ministers from key OPEC+ countries Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, a statement from the organisation said.
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The increase was similar to ones decided in previous months.
The OPEC+ statement said the latest agreed hike was “to support oil market stability” but that the seven countries also saw an opportunity “to accelerate their compensation” in a time of historically high oil prices.
It added that the ministers “reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments announced in November 2023”.
Leon, at Rystad Energy, said that OPEC+ was wary in case the Mideast war changes, and Iran’s stranglehold on the Strait of Hormuz eases.
“When the Strait of Hormuz reopens, the market could move very quickly from fear of shortage to fear of surplus,” he said.
“Returning OPEC+ supply, a stronger US shale response and weaker demand after a period of very high prices could leave the market with a very large oversupply problem,” he said.
AFP
Nigeria, Algeria, and Niger have expressed joint commitment to the Trans-Saharan Gas Pipeline (TSGP) project, which is set to significantly strengthen Africa’s regional energy security.
Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made the disclosure on Thursday at the 5th Ministerial Meeting of the TSGP Steering Committee in Algiers.
The high-level session included ministerial delegations from the three participating nations and a strategic consultation with Algerian President Abdelmadjid Tebboune.
The minister reaffirmed Nigeria’s commitment to the successful delivery of the multi-billion-dollar infrastructure project, describing it as a landmark initiative that will redefine energy security across the continent.
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According to Ekpo, technical and commercial discussions are ongoing among stakeholders to reinforce the regulatory and financial frameworks required for the project’s implementation.
He noted that officials from the three countries have reviewed the latest feasibility reports and officially resolved that the project proceeds immediately into its next development phases.
“This project means a lot to the three countries in terms of industrialisation and job creation,” Ekpo asserted.
“We’ve talked about the Trans-Saharan Gas Pipeline, and the President of Algeria has expressed his interest in the completion of the project,” Ekpo said. “I assure him that on the part of Nigeria, we will do everything possible to ensure the project sees the light of day.”
The minister pledged to work closely with his counterparts in Algeria and Niger, as well as the respective national oil companies — including the Nigerian National Petroleum Company Limited (NNPC Ltd) and Algeria’s Sonatrach — to accelerate project implementation.
On his part, President Tebboune reaffirmed Algeria’s full diplomatic and financial commitment to the pipeline.
He expressed confidence that with the robust political will demonstrated by the three governments, the pipeline will seamlessly move from planning to execution.
Tebboune noted that when completed, the transnational pipeline would deliver energy security, lucrative investment opportunities, and sustainable economic development for millions of people across Africa and European export markets.
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