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DPR Deplores Sale of Cooking Gas to Unlicensed Distributors, Industrial Consumers

By Businessnews Staff on September 15, 2014

The Department of Petroleum Resources (DPR) has decried the sale of Liquefied Petroleum Gas (LPG), otherwise called cooking gas, to unlicensed distributors and bulk end users by LPG plant owners across the country.

The regulatory body has also insisted that any depot storing imported or coastal LPG must establish quality control laboratory or enter into Memorandum of Understanding (MoU) with third party laboratory for the control of the quality of the products.

Speaking at the 2014 Annual General Meeting (AGM) of the DPR with the LPG operators in Lagos at the weekend, the Controller of Lagos Zonal Operations of the agency, Mrs. Chioma Njoku noted that despite the giant strides recorded in the LPG industry, there were still pockets of irregularities that needed to be addressed.

She said despite the directives to desist from such practice, some LPG plant owners had continued to sell products to unlicensed distributors and industrial consumers, adding that erring operators would face sanctions.

Njoku reminded the stakeholders that in as much as the regulatory agency encouraged the proliferation of LPG plants, the prospective plant owners must follow due process to obtain all requisite approvals before commencement of any project.

She stressed the need for the control of quality of products, saying that LPG received and distributed to the public must meet the recommended specification.

“It is unacceptable for depots storing imported or coastal LPG to continue operating without quality control laboratory. In this regard, all products reception points must establish a functional laboratory. Depots that currently do not have laboratories should have an MoU with third party laboratories for product re-certification,” she said.

Njoku disclosed that there had been few unfortunate fire incidents in some LPG plants, adding that the attendant loss of lives and destruction of property was a stark reminder of the cost associated with safety slips in operational locations.

To reduce the risk of fire at LPG facilities, Njoku charged the operators to adhere to the various approved design considerations and requirements such as layout, spacing and distance requirements for vessels, drainage, and containment control, which would help to limit the extent of fire damage in time of accident.

“Additional considerations such as fireproofing, water-draw systems and relief systems are also important with respect to the integrity of the installation and risk reduction. Equally as important to prevention of leakages or release, is properly designed, installed and maintained fire protection system,” she said.

Earlier in his speech, the Director of DPR, Mr. George Osahon restated the commitment of the federal Government in improving LPG supplies to the local market through the Nigeria LNG Limited.

He said the federal government was putting in place measures to deepen LPG consumption in the country.

To this end, Osahon, who was represented by an Assistant Director in charge of Gas Operation, Mr. Musibau Balogun stated that gas supply to the local market has increased from the initial 150,000 metric tonnes to 250,000 metric tonnes yearly.

In addition to boosting LPG distribution nationwide, Osahon disclosed that the DPR has introduced new interim guidelines for gas retailing at DPR-licensed retail outlets across to make LPG readily available to consumers.
He said the guidelines for the grant of permit for bulk LPG off-take had also been approved to guide LPG vessel owners.

[This Day]

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