NIPCO’s Tremendous Achievements in Nigeria Downstream

R – L.:  Manager Operations ,Engr Masheni Gabriel : MD NIPCO Plc ,Suresh Kumar; MD NIPCO Gas Limited, Nagendra Verma ; and Manager LPG, Usman Adamu at an interactive session  with Energy Editors in Lagos.

-Felix Douglas

…Company has 19,500 storage capacity of LPG and 500 metric tons of propane tank under construction.

 …Proximity to jetties gives company advantage over other operators to convey products.

The Nigerian Independent Petroleum Company (NIPCO), has an integrated system with range of products such as white oil (Premium Motor Spirit) PMS, Automotive Gas Oil (AGO), Liquefied Petroleum Gas (LPG) including Compressed Natural Gas (CNG), with wide spread across the country.

NIPCO has been in business since 2004 when it was established and is strategically placed at the jetty with double string reducing turnaround time since it acquired Mobil Oil (11Plc) in 2017. The acquisition of Mobil Oil offered opportunity to control over 200 branded new retail outlets with 4500 independent marketers.

On LPG, the company has a 19,500 storage capacity and 500 metric tons propane tank which is being constructed.

The company has over 100 branded LPG bottling plants with 150 trucks lift. NIPCO has international graded accessories including cylinder burners with hoses and offers comprehensive solution and services to its customers.

Its mission and objective as an integrated company is to achieve backward integration on like other companies that starts business with upstream and proceeds to downstream, for NIPCO, it is a downstream company heading towards upstream which is the focus of being a first choice to its customers and stakeholders.

To be the first choice, there must be quality and innovation. The company has brought innovations into Nigeria oil trading sector and other downstream companies are taking cue from the invention.

NIPCO is the first company to build 5000 metric tons which most companies are now emulating the gesture hence as the company leads others follow. It is making its products easily accessible to average Nigerians.

On like other downstream companies, NIPCO’s proximity to jetties makes it reduces stress and man hours with a short distance to convey products. It prides itself on getting the accurate quantity from these vessels.

NIPCO has automated Central Control room where it monitors all the company’s products, PMS, AGO and LPG. Expectedly, the company drivers are properly trained to ensure safety.

It improves fuel supply nationwide and expands distribution outlets across the country.

Managing Director of NIPCO Plc, Suresh Kumar, disclosed to energy journalists during a facility tour in Lagos that the company has continued to meet demands of Nigerians with its state-of-the-art facilities.

Kumar added that the company plans to build more facilities across the country.

NIPCO10 world-class petroleum tanks with electronic radar gauges has a combined capacity of 85 million litters, supported by 10 loading arms and 2 buffer gantries loads over 200 trucks per day.

Explaining to journalists at the media tour, Kumar stated that the company is investing massively in gas infrastructure in order to optimised utilisation of the nation’s abundant gas resources in line with country’s decade of gas aspiration.

He said the company has invested over $50 million in developing Nigeria’s natural gas over the years, while more projects are still in the offing.

As part of NIPCO objectives, cars run on CNG facilities across the country while it is currently expanding its scope on supply of Liquefied Natural Gas (LNG) and constructing new pipeline infrastructure to strategic locations in the country.

Kumar stated thus: “We have spent more than $50 million on natural gas infrastructure over the years. We believe that there are lots of potential in Nigeria that can be explored for gas utilisation, and this will further boost our economy.

“By using indigenous gas, we can reduce subsidy burden on the Federal Government. We can reduce the importation burden and that will directly or indirectly save our huge capital flight and there will be more employment opportunities for Nigerians.

“We are the pioneers. We always dream for the future. So we dreamt for natural gas utilization in Nigeria right from 2008 and we started investing. We introduced this model to the government and say that look, Nigeria is a country that has abundant natural gas and instead of wasting subsidy on petrol, we should be looking at a blueprint of changing the petrol market to CNG market.”

The NIPCO MD said as an integrated company, it supplies Nigerian market with its petroleum products.

The Managing Director, NIPCO Gas, Nagendra Verma, told energy editors that the company currently has 14 CNG filling stations in various states across Nigeria, while another six CNG stations are currently under construction.

He said over 7000 vehicles are presently running on CNG, adding that over 350 truck fleet of NIPCO are all running on gas.

“We have workshops which are fully efficient and fully capable to convert PMS vehicles to gas, we have the expertise and we are ready to convert more vehicles to run on gas, he said.

“So, we intend to have CNG stations in almost all the states of Nigeria wherever the pipeline is available.

“Presently we are laying LNG pipeline for 80 Kilometer pipeline from Shagamu interchange to Ibadan.

“The pipeline work is going on. We expect to commission first phase by the end of December 2023. And the entire pipeline is expected to be completed by next year,” he said.

NIPCO is developing gas pipeline infrastructure in Lekki Free Trade Zone in Lagos, which is currently nearing completion. The company is currently constructing a propane tank of 500mt capacity, the biggest in Nigeria, in a bid to meet up with the Federal Government requirements of mixing certain quantity of propane with butane for domestic gas.

The propane tank would be completed in the next three months.

Since the President-elect Bola Tinubu has declared plans to end fuel subsidy which the current government says it would end by June.

The company believes that deepened utilization of indigenous natural gas will certainly assist the Federal Government in reducing subsidy burden and reduced importation of other fossil fuels to the country.

NIPCO Gas fuels 7000 vehicles with AutoCNG with 4 conversion workshops in Abuja and Ogun state to convert PMS vehicles to AutoCNG.
















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