- LPG Consumption Grew by 600% in Two Years – FG
The consumption of Liquefied Petroleum Gas, popularly known as cooking gas, in Nigeria, increased by 600 per cent in the past two years, the Federal Government announced on Thursday.
It was also gathered that the $12m LPG plant being established in Ikuru Town in Rivers State by Green Energy International Limited, operator of Otakikpo Marginal field in OML 11, would be ready for installation by the second quarter of 2019
In his address in Abuja, the Minister of State for Petroleum Resources, Ibe Kachikwu, said that the Nigerian Gas Policy had helped in growing country’s output in gas production.
Kachikwu said, “The Nigerian Gas Policy is a very comprehensive document that sets out the parameters for growth for gas, how we meet our local needs, what sort of infrastructure is required and the various segments of business opportunities that exist.
“It was passed by the Federal Executive Council and it has been driving the gas sector. We are hoping that relying on that policy we will be able to drive investments into the fertiliser, petrochemicals, methanol and LPG areas.
“LPG is one area where we have done some very good work. We’ve seen a 600 per cent increase in LPG growth over the last two years. Consumption is about 420,000 metric tonnes, which is about 600 per cent increase and that’s a very major movement.”
On the 12 million standard cubic feet per day LPG plant, the Chairman, Green Energy, Prof. Anthony Adegbulugbe, said the approval to construct the facility was issued by the Department of Petroleum Resources in August this year, a sequel to the successful submission of the engineering design.
Adegbulugbe, according to a statement issued in Abuja, said that the plant was being constructed in China at a cost of about $12m, adding that the project would ensure zero gas flare in the Niger Delta, under its small-scale gas utilisation programme.
He noted that host communities in the area would get uninterrupted power supply through the company’s gas-to-power project, as six megawatts gas-fired power generators were already on site for installation.
Adegbulugbe said that the company had secured a 15MW power generation licence from the National Electricity Regulatory Commission and efforts were being made to increase it to 40MW.
Outlining other plans of the company in its phase two development programme, Adegbulugbe said Green Energy had completed a 3D seismic campaign to understand the field with a view to drilling more wells in the area, while an onshore export terminal was being proposed for establishment in 2020.
He said that the company started production in 2017 and currently produced 6,000 barrels of crude oil per day, adding that it planned to ramp up production to 20,000bpd in the next few years.
He further noted that Green Energy and its technical partner, Lekoil, had patronised local community contractors since its inception with over N3bn worth of procurement contracts which had contributed to the economic development of the people.
Oil Jumps to $67.70 as OPEC+ Extends Production Cuts
Oil Jumps to $67.70 as OPEC+ Extends Production Cuts
Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.
OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.
Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”
Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.
Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.
Experts have started predicting $75 a barrel by April.
“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”
Gold Hits Eight-Month Low as Global Optimism Grows Amid Rising Demand for Bitcoin
Gold Struggles Ahead of Economic Recovery as Bitcoin, New Gold, Surges
Global haven asset, gold, declined to the lowest in more than eight months on Tuesday as signs of global economic recovery became glaring with rising bond yields.
The price of the precious metal declined to $1,718 per ounce during London trading on Thursday, down from $2,072 it traded in August as more investors continue to cut down on their holdings of the metal.
The previous metal usually performs poorly with rising yields on other assets like bonds, especially given the fact that gold does not provide streams of interest payments. Investors have been jumping on US bonds ahead of President Joe Biden’s $1.9 trillion coronavirus stimulus package, expected to stoke stronger US price growth.
“We see the rising bond yields as a sign of economic optimism, which has also prompted gold investors to sell some of their positions,” said Carsten Menke of Julius Baer.
Another analyst from Commerzbank, Carsten Fritsch, said that “gold’s reputation appears to have been tarnished considerably by the heavy losses of recent weeks, as evidenced by the ongoing outflows from gold ETFs”.
Experts at Investors King believed the growing demand for Bitcoin, now called the new gold, and other cryptocurrencies in recent months by institutional investors is hurting gold attractiveness.
In a recent report, analysts at Citigroup have started projecting mainstream acceptance for the unregulated dominant cryptocurrency, Bitcoin.
The price of Bitcoin has rallied by 60 percent to $52,000 this year alone. While Ethereum has risen by over 660 percent in 2021.
Oil Prices Extend Gains to $64.32 Ahead of OPEC+ Meeting
Oil Prices Rise to $64.32 Amid Expected Output Extension
Oil prices extended gains during the early hours of Thursday trading session amid the possibility that OPEC+ producers might not increase output at a key meeting scheduled for later in the day and the drop in U.S refining.
Brent crude oil, against which Nigeria oil is priced, gained 0.4 percent or 27 cents to $64.32 per barrel as at 7:32 am Nigerian time on Thursday. While the U.S West Texas Intermediate gained 19 cents or 0.3 percent to $61.47 a barrel.
“Prices hinge on Russia’s and Saudi Arabia’s preference to add more crude oil production,” said Stephen Innes, global market strategist at Axi. “Perhaps more interesting is the lack of U.S. shale response to the higher crude oil prices, which is favourable for higher prices.”
The Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, are looking to extend production cuts into April against expected output increase due to the fragile state of the global oil market.
Oil traders and businesses had been expecting the oil cartel to ease production by around 500,000 barrels per day since January 2021 but because of the coronavirus risk and rising global uncertainties, OPEC+ was forced to role-over production cuts until March. Experts now expect that this could be extended to April given the global situation.
“OPEC+ is currently meeting to discuss its current supply agreement. This raised the spectre of a rollover in supply cuts, which also buoyed the market,” ANZ said in a report.
Meanwhile, U.S crude oil inventories rose by more than a record 21 million barrels last week as refining plunged to a record-low amid Texas weather that knocked out power from homes.
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