TheCable

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has given Novertek Energy Limited approval to construct liquefied petroleum gas (LPG) depot in Abuja.

In a statement on Tuesday, the authority said Novertek Energy Limited will construct a 500MT LPG facility in the federal capital territory (FCT).

The oil industry regulator said it also signed a memorandum of understanding (MoU) with Femadec Energy for the provision of compressed natural gas (CNG).

The agreement between NMDPRA and Femadec Energy comes at a time when the federal government is promoting the use of CNG owing to the hike in the cost of petrol after the subsidy removal.

Between June to July, a litre of petrol jumped to N568 from N189 at the retail stations owned by the Nigerian National Petroleum Company (NNPC) Limited after President Bola Tinubu stopped subsidising the commodity.

To mitigate the impact of the petrol subsidy removal on Nigerians and businesses, Tinubu’s government has pledged to spend N100 billion on CNG-powered vehicles for its mass transit project.

Essentially, CNG projects were included in the proposed palliatives to cushion the adverse effects of the removal of the petrol subsidy and devaluation of the naira.