Rainoil CEO Urges FG to Support Investment in LPG Market
The Group Managing Director and Chief Executive Officer of Rainoil Limited, Dr. Gabriel Ogbechie, has urged the Federal Government to continue supporting the country’s Liquefied Petroleum Gas (LPG) market through policy initiatives.
Speaking at the 29th edition of the Nigerian Economic Summit Group (NESG), Ogbechie emphasized the need for ongoing government support in this vital sector. He acknowledged that the government has taken positive steps but stressed the importance of sustained backing for the LPG market. According to Ogbechie, energy remains the backbone of the Nigerian economy.
Ogbechie stated, “One of the points I emphasized is that Nigeria remains predominantly a crude oil-producing nation. We have more than 36 billion barrels of crude oil in reserve. Unfortunately, our daily crude oil production is currently around 1.4 million barrels, a fraction compared to our vast reserves. Nigeria needs to take every possible measure to increase its production.”
He further asserted, “I believe Nigeria should, at the very minimum, produce 3 million barrels daily. As we can see, the economy is facing challenges. The foreign exchange rate and the Naira have been significantly affected, largely due to inadequate foreign exchange earnings. This shortfall is a result of inadequate crude oil production.”
“Crude oil accounts for about 95 percent of our foreign exchange earnings. To address this issue promptly, we must boost our crude oil production. Therefore, the federal government should encourage those with the capacity to work on their oil assets.”
Ogbechie also highlighted the potential of the gas sector, noting, “We have over 200 trillion cubic feet of gas reserves in Nigeria, but a significant amount is still being flared. As a company deeply involved in the LPG space, Rainoil finds itself importing LPG into the country. We’re using precious foreign exchange to import gas while a substantial amount of gas is being wasted through flaring.”
“People should be incentivized to invest in gas collection and processing. At the very least, Nigeria should achieve self- sufficiency in the gas sector and aim to export gas. Considerable investments are required to accomplish this goal.”
Speaking about Rainoil’s capabilities, Ogbechie shared, “At Rainoil, we have substantial capacity. We are one of Nigeria’s leading downstream oil and gas companies, with a network of over 180 petrol stations nationwide. Our strategic oil terminals are strategically located in Lagos, Oghara, and Calabar.”
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“We have invested in LPG, with a facility capable of storing over a thousand metric tonnes of LPG in Lagos, and multiple LPG plants nationwide. Additionally, we have a distribution fleet consisting of more than 300 tank trucks for petroleum product distribution across the country. In terms of capacity, Rainoil is well-prepared to fulfill its role and take on added responsibilities in the LPG sector.”
Dr. Ogbechie’s insights underscore the importance of government support for the energy sector and the potential for growth in Nigeria’s gas industry.
