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NCDMB, Butane Energy commission second LPG plant in Kaduna—part of ambitious 1,000MT capacity expansion across Northern Nigeria

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Last updated: November 12, 2024 11:54 am
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… announce new commissioning dates for Abuja, Bauchi, Kano LPG plants
Oredola Adeola

 

The Nigerian Content Development and Monitoring Board (NCDMB), in collaboration with Butane Energy Limited, has commissioned a 180-metric-tonne Liquefied Petroleum Gas (LPG) filling plant in Kaduna, Kaduna State.

Advisors Reports confirmed that this facility, being the second, is part of a joint venture to establish five LPG plants across Northern Nigeria, with a combined storage capacity of 1,000 metric tonnes.

This information was contained in a statement by Engr. Felix Omatsola Ogbe, Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), represented by Alhaji Abdulmalik Halilu, Director of Monitoring and Evaluation.

Speaking after the commissioning ceremony at the Kaduna plant on Friday, Ogbe shared that the Kaduna Filling Plant is the second installation in a series, following the commissioning of a 100MT LPG Storage and Bottling Plant in Kabukawa Layout, Katsina, Katsina State, in 2021.

Ogbe highlighted that plans are underway to build the third filling plant in Abuja, where land acquisition has been completed and equipment imported.

He added, “Kano LPG Storage and Bottling Plant in Kano State is slated for commissioning in the first quarter of 2025, while construction on another facility in Bauchi is at an advanced stage.”

The Executive Secretary praised Butane Energy Ltd for its progress in enhancing LPG accessibility in northern Nigeria, citing that NCDMB’s equity partnership with the company was fueled by “a [bankable] business plan aimed at enhancing gas penetration in northern Nigeria.”

This partnership aligns with the NCDMB’s mandate to catalyze in-country capacity development through equity funding.

Additionally, Ogbe noted the project’s potential to boost employment, with over 200 Nigerians already employed, providing opportunities across technical and managerial positions.

He emphasized the alignment of the project with the Federal Government’s commitment to achieving net-zero emissions by 2026 and promoting cleaner alternatives to kerosene and firewood as cooking fuel.

Alhaji Isa Inuwa Muhammed, Chairman of Butane Energy Ltd, expressed gratitude to NCDMB for their trust in the company’s vision and approach, noting that the NCDMB is a co-owner of Butane Energy Ltd.

“The relationship between the Board and Butane is based on trust, and the success thus far greatly reinforces the partnership,” Muhammed said.

Established in 2017, Butane Energy Ltd is a key player in LPG storage and marketing, with extensive distribution assets in northern Nigeria, aiming to make LPG accessible across the region.

This new LPG plant in Kaduna reflects NCDMB’s strategic investment in third-party projects that foster in-country capacity, reduce dependence on traditional fuels, promote sustainability, and support Nigeria’s transition to a greener future.

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