Preparations are complete for the launch of Ardova PLC’s new gas processing facility, which is poised to start operations and supply the Nigerian market.
Owned by Abdulwasiu Sowami, a notable yet understated billionaire from Abeokuta, Ogun State, and a savvy businessman, Ardova PLC is gearing up for a significant impact on the local energy sector.
The start of this local production is anticipated to lead to a reduction in cooking gas prices, a development eagerly awaited by industry stakeholders.
Ardova Plc, a leading player in Nigeria’s energy sector, has proudly finished building its state-of-the-art Liquefied Petroleum Gas (LPG) plant.
Situated in Ojora, Lagos, the facility is slated to begin operations in March 2024, with the capacity to fulfill over half of the country’s LPG needs.
Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), revealed this information during a preliminary visit to the site.
The Ardova gas facility boasts a brand-new LPG storage capacity of 24,000 metric tonnes, making it the largest of its kind in West Africa.
It also features significant upgrades, including a fully propane-rated terminal and a 1.6KM 10-inch pipeline linking the facility to the NPSC jetty in Apapa.
With in-tank and in-line blending capabilities, along with other essential support structures, the plant has the potential to process approximately 700,000 metric tonnes annually, covering more than 50% of Nigeria’s LPG demand.
Impressed by the project’s scope and adherence to regulatory standards, the NMDPRA chief praised Ardova Plc’s commitment to safety and efficiency, emphasizing the importance of the plant’s automation for enhancing operations.
“As regulators, our role is to facilitate investment and ensure projects like this, critical for the nation, are completed on time,” Ahmed stated.
Concerning the cost of cooking gas in Nigeria, the Nigerian Association of Liquified Petroleum Gas Marketers (NALPGAM) recently highlighted that the high prices consumers face are due to practices by LPG terminal operators.
During a session with the Senate committee on gas, NALPGAM’s president, Oladapo Olatubosun, voiced this concern. The price of cooking gas has surged to N1,200 per kilogram, exacerbating the financial strain on Nigerians amidst rising inflation and living costs.