The Nigerian Content Development and Monitoring Board (NCDMB) and Butane Energy Limited have taken a significant step forward in their collective drive to make liquefied petroleum gas (LPG) a widely accessible, cleaner, and more cost-effective fuel option for cooking, with the commissioning of a 180-metric-tonne LPG Filling Plant in Kaduna, Kaduna State.

Commissioned on Friday, the Filling Plant, is the second after the 100MT LPG Storage and Bottling Plant in Kabukawa Layout, Katsina, Katsina State, in 2021, in keeping with a joint venture to establish five of such facilities in Northern Nigeria with a combined storage capacity of 1,000MT.

Biztellers reports that the Kano LPG Storage and Bottling Plant in Kano State is slated for commissioning in the first quarter of 2025, while construction work on another in Bauchi is at an advanced stage, with Abuja next in line.

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The Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, represented by the Director, Monitoring and Evaluation of NCDMB, Alhaji Abdulmalik Halilu, expressed satisfaction with the impressive strides of Butane Energy Ltd.

He pointed out that NCDMB was motivated to enter into equity partnership with the indigenous LPG storage, trading and marketing company after the latter presented “a [bankable] business plan aimed at enhancing gas penetration in northern Nigeria.”

He explained that the Board acted in line with its statutory mandate to catalyse in-country capacity development through equity funding.

NCDMD, he noted further, was also interested in job creation through such projects, as there were clear possibilities for employment into technical and managerial cadres as operations progressed.

According to him, no fewer than 200 Nigerians gained employment, and there was the added benefit of local content growth.

Equally significant to the NCDMB was the consideration that the project was in alignment with Federal Government’s expressed commitment to net-zero emissions by 2026, and the campaign for cleaner alternative to kerosene and firewood as cooking fuel.

In his own remarks, the Chairman, Butane Energy Ltd, Alhaji Isa Inuwa Muhammed, stated that NCDMB is a co-owner of the company, and expressed gratitude to the Management of the NCDMB for the confidence reposed in his company, particularly in its vision and business approach.

According to the Chairman, the relationship between the Board and Butane is based on trust, and that the success thus far would greatly reinforce the partnership.

Established in 2017 as a player in LPG storage and marketing, Butane Energy Ltd has massive distribution assets in northern Nigeria, and is deliberate in its corporate objective to make the fuel accessible to every part of the region.

The LPG Filling Plant is part of NCDMB’s strategic third-party investments aimed at supporting in-country capacity development, reducing reliance on traditional fuels, fostering sustainability and building a greener future for Nigeria.

Energy policy expert, Yemi Adeoye has suggested that a second term for former U.S. President Donald Trump could present significant opportunities for African leaders, particularly in the realm of energy development.

Speaking on TVC News on Monday, Adeoye emphasized that Trump’s focus on reducing global regulations and prioritizing the U.S. economy could allow African nations to better leverage their natural resources without the constraints of climate policies that have historically been imposed by Western powers.

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“Looking at Africa as an economic bloc, I think it will be good, especially when you look at our energy concerns,” Adeoye said.

“I think his administration would be okay because Mr. Trump is very focused on reducing the United States’ global regulations. His focus is more on the internal economy of the United States, and that is his major focus.”

Adeoye pointed out that Trump’s economic strategy has typically been centered around protecting and boosting the U.S. economy, particularly in comparison to economic competitors like China and Western Europe.

“If you look at his comments about the U.S. economy, it has always been ‘America first’—how he is going to grow the economy internally,” he explained.

“He is not really bothered about blocs that are not economic competitors or contemporaries of the United States. Africa is not competing with the U.S. Africa is not an economic contemporary of the U.S., so he is not bothered about Africa.”

On the issue of climate change and energy policies, Adeoye noted that Trump’s historical stance of downplaying climate concerns could be advantageous for African nations looking to develop their energy sectors.

Adeoye said, “He’s not going to impose the climate change policies on Africans. Trump, during his last administration, did not really bother about Africa. He is not concerned about climate change; he even said it was a hoax that it was not real, and he is in full support of fracking.”

Adeoye explained that Trump’s support for shale fracking, a controversial method that has boosted U.S. oil production, could have a ripple effect on global energy markets.

“Shale fracking, which we know has environmental issues, is fully supported by Trump because it is going to grow the United States’ oil production significantly,” he said. “In fact, global oil production should grow by about 10% if shale fracking reaches its full potential.”

He also pointed out that Africa contributes only about 3.8% of global greenhouse gas emissions, much lower than major emitters like China and the U.S. “Africa’s emissions footprint is very low, and that means our mineral resources are being underutilized,” Adeoye said.

“What we probably do majorly is export them across the world. We can now use these resources to develop because our greenhouse gas emissions are so low.”

In this context, Adeoye stressed the importance of Africa being allowed to fully develop its natural resources without restrictions.

He highlighted Nigeria’s ongoing efforts to advocate for the right to utilize its mineral deposits, a message reinforced by President Bola Tinubu at international platforms like the United Nations. “Nigeria has been campaigning in all the major global energy conferences that Africa should be allowed to develop the continent with its mineral deposits,” he said.

In addition, Adeoye urged African leaders to seize the opportunity presented by a Trump presidency, emphasizing that his policies could help unlock the continent’s energy potential.

“I think Trump is an opportunity for African leaders to be very strategic,” he said. “He is not going to impose regulations on them. For all we have seen, we can take it that he would not want to impose regulations with regard to gas emissions or climate change.”

The Lagos based, 650,000-barrel-per-day Dangote Petroleum Refinery and Petrochemicals (DPRP) might be struggling for real acceptance in Nigeria’s domestic market, but the international markets appear to have embraced it with both hands.

As at Wednesday, November 6, 2024, three global oil dealers account for as much as 75 percent of refined products being lifted from the DPRP.

In a development touted as reshaping petroleum trading between Africa and Europe, Vitol Group, Trafigura Group, and BP Plc were listed by Bloomberg as the dominant buyers of fuels from the DPRP.

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Going by the data, it can be seen that the three global dealers accounted for the bulk of the plant’s shipments since flows began ratcheting up around the middle of 2024.

The report was backed by data from Precise Intelligence, a new oil-and-gas trading analytics firm based in Geneva.

The data showed refined products offtake from February 27 to October 10 with other customers, and indicated that the Nigerian market took 25 percent of total fuel purchases from the DPRP in the period under review.

Recall that the DPRP on starting operations, kick-started the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS) (petrol).

The management of the DPRP has been consistent in expressing confidence that as soon as it becomes fully operational, it would peak at processing up to 650,000 barrels a day of crude into products including gasoline and diesel.

The implication is that at its peak, the DPRP would be the biggest single plant in Europe or Africa, conferring on it the capacity to reshape the regions’ oil and fuel trading.

Oil industry pundits note that the coming on stream of the DPRP has already trimmed a glut of Nigerian crude.

Analysis of the report showed that the refinery has loaded almost 6 million tons of fuel since starting up.

This is equivalent to almost 45 million barrels, loading rates averaged about 35,000 tonnes a day in October, its data showed.

The DPRP itself said late last month that the refinery had reached processing rates of about 420,000 barrels a day of crude.

Stakeholders are paying close attention, which sees the composition of fuel cargoes loading from the DPRP closely watched because it offers clues into where the refinery is at in terms of starting up different processing units.

On the products sold, the figures show that automotive gas oil — commonly known as diesel — is the largest cargo type being lifted, accounting for the highest proportion of shipments. This is followed by fuel oil, which ranks second in terms of volume.

Together, these two products make up more than 60 percent of the total output being collected from the plant.

Other significant fuel types being processed include gasoline, which is used for cars and other light vehicles, and jet fuel, primarily utilised by the aviation industry for aircraft.