Page 11 - AfrElec Week 19 2021

AfrElec FUELS AfrElec

Nigeria considers domestic LPG subsidy

NIGERIA NIGERIA’S government is reportedly consider- We believe that the expansion [of this policy]
ing a plan to subsidise domestic LPG prices. to [cooking] gas, especially now that we are in
According to Ahmed Bobboi, the executive a decade of gas, will add value to the economy.”
secretary of the country’s Petroleum Equalisa- He continued: “If it’s working well for [gaso-
tion Fund (PEF), Abuja sees subsidies as a means line], and the government wants to promote the
of promoting the use of LPG as cooking gas. Tak- use of [cooking] gas. If we can take the practice to
ing this step would complement ongoing efforts gas, we believe that it will add value to the econ-
to encourage Nigerians to phase out wood, char- omy in so many ways in the value chain.”
coal and other solid fuels, he said at an interactive Expanding the use of LPG will also mitigate
meeting with reporters last week. some of the problems that can arise from the
Bobboi explained that the government was use of solid fuels, including deforestation and
considering a subsidy similar to the one it already ill health, he added. The African Refiners and
offers to sellers of gasoline. Currently, he noted, Distributors Association (ARDA) estimates that
PEF reimburses fuel retailers for any losses they indoor pollution from burning wood and other
may incur as a result of selling gasoline at the types of biomass contributes to the death of more
prices set by the state. This process, known as than 600,000 Africans each year, he noted.
equalisation, has already served to boost domes- Bobboi did not say when Abuja expected
tic demand for gasoline, and it could do the same wrap up discussions on the proposed LPG sub-
for LPG, he said. sidy. The government is working with represent-
“[LPG] is an essential commodity. If we are atives of the relevant ministries and state agencies
able to make it cheaper and accessible, we will to finalise the details of a policy proposal, and it
be able to improve the economy,” he was quoted will also have to bring that proposal into line with
as saying by The Guardian. “We have been able the Petroleum Industry Bill (PIB), which is still
to successfully equalise petrol for over 45 years. being debated in Nigeria’s National Assembly.™

SCDP says new terminal will help

reduce Cameroon’s fuel import bill

CAMEROON CAMEROON’S national petroleum product Before the launch of the new terminal, SCDP
concern, Société Camerounaise des Dépôts often had to pay penalties for tankers that did not
Pétroliers (SCDP), expects the total cost of fuel depart on schedule, she said. “You know that the
imports to decline as a result of the completion of state pays for demurrage every time a boat comes
a new oil terminal at the port of Douala. and has to stay extra days,” Mbio was quoted as
Véronique Moampéa Mbio, SCDP’s CEO, saying by Agence Ecofin. “At the moment, we
noted recently that the new terminal would be [make] on average CFA11bn [$20.36mn] in
able to unload refined fuels more rapidly than demurrage payments.”
the port’s No. 1 Wharf, which was pressed into SCDP brought the Douala terminal on
service in 2001 after the original terminal was stream on April 11. The new facility is capable
damaged irreparably in a series of accidents. The of berthing and mooring two large tankers and
wharf cannot always unload petroleum prod- also has a network of pipelines and a pedestrian
ucts from tankers quickly, since it also handles bridge. It was built over a period of about two
other types of cargo, but the new terminal will years by a French contractor, Entreprise Jean
only load and unload refined fuels, she said. As Negri et Fils (EJN). The cost of construction
a result, she explained, tankers will not have to came to CFA10bn (18.51mn) and was covered
remain in port as long. by the port authority, known as the Autonomous
Moreover, she said, the terminal will be able Port of Douala (PAD).
to accommodate larger ships. As a result, she Cameroon is completely dependent on
stated, the time needed to pump fuel from tank- imported petroleum products. It has not been
ers to onshore storage tanks is set to drop by 30% able to produce its own fuel since 2019, when its
on average. only working refinery was destroyed in a fire.™

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