Fear of substandard cylinders poses threat to gas consumption

Adetola Bademosi reports that increasing cases of substandard LPG cylinders threaten the utilisation of domestic gas.

Despite the growing demand for natural gas and an expected target of five million Metric Tonnes (MT) by 2022 as contained in the Nigeria Gas Policy (NGP) of 2017, gas utilization for both industrial and home use has raised safety concerns.

The use of gas as a means of cooking is being fast adopted in homes across the country because it provides a faster, cleaner and reasonably cheaper source of energy. Yet several lives have been taken with properties worth billions lost due to LPG-induced fire outbreaks.

According to a report by Clean Cooking Alliance hosted by the United Nations Foundation on LPG Safety, innovation and market growth, over 2.5 billion people in resource-poor settings worldwide use LPG for cooking, including millions more in developed countries.

However, it said although LPG is a relatively safe cooking fuel, the dramatic and devastating nature of some accidents has led to public fears about the commodity.

Over the years, the spate of gas explosions has soared, leaving in its wake, massive carnage. So, for all the benefits that LPG offers, many households are still reluctant to make the switch for safety concerns.

 

Incidences in 2020

In March 2020, an explosion that happened at a gas processing plant in Abule-Odo, Lagos State led to the destruction of about 50 buildings, killing about 15 persons.

The Nigerian National Petroleum Corporation (NNPC) had, at the time, said the explosion was triggered by a truck that ran into some gas cylinders stacked in the plant which was close to its pipeline.

Also in September same year, a similar incident occurred around Iju-Ishaga, Ajuwon, Lagos. Thirty people were reportedly injured when a truck trying to offload its gas content exploded.

Similarly, in October 2020, eight persons died from a similar incident at Baruwa, another part of Lagos. A gas plant also reportedly exploded in January of the same year at a gas plant in Agbor, Delta State.

These are notable gas mishaps that gained public attention. There are several other unreported occurrences within households.

In all, stakeholders, as well as experts, have blamed the menace largely on the proliferation of fake and substandard cylinders in circulation as well as poor safety practices.

 

Increasing gas utilization

Nigeria has an estimated gas reserve of 202 trillion Standard Cubic feet (Tcf) and ranked 9th in proven natural gas reserves in the world. To increase gas utilization and reduce gas flaring, the Federal Government (FG) has put various policies in place.

Over the years, through these policies, gas production and utilization have doubled, while flaring has continued to reduce.

For instance, the  Nigerian LNG Limited in its 2020 facts and figures report, said between 2007 and 2019, it cumulatively supplied over 1,802kilotonnes of LPG into the domestic market, spurring a steady rise in annual domestic consumption in a market that was below 50kt per annum in 2007 to over 800kt per annum in 2019.

Also, the Nigerian National Petroleum Corporation (NNPC), in its monthly financial and operations report, showed that between January 2020 to January 2021, the total gas supply for the period stood at 3,189.64 BCF out of which 526.67 BCF and 1,468.21 BCF were commercialized for the domestic and export market respectively.

This signifies 84BCF increase compared with the 3,105BCF total gas supply achieved between  December 2018 to December 2019.

 

Burden of substandard LPG cylinders, stalled investments

Recently, three different cases of gas explosions occurred at locations within Abeokuta, Ogun State capital. The first was recorded at a hotel said to belong to the state’s ex-Governor, Gbenga Daniel.

The mishap was blamed on the fake cylinder used by a technician while servicing the hotel’s revolving door.

Another occurred at the Obasanjo Library where some technicians were conducting routine servicing of the air conditioning units.

However, barely 24 hours later, another explosion took place at Onikoko area of the state but this time, the explosion came from a cylinder that was not in use.

The spate of gas explosions from LPG cylinders has become a major worry to consumers as they still could not tell the difference between substandard or original cylinders.

Also, the worries are aggravated by the very little or no information in the public space on how to either identify a substandard cylinder or ascertain the actual date of expiry.

In the last two years, cylinders worth hundreds of millions have been destroyed by the Standard Organisation of Nigeria (SON) for failing to comply with best standards.

For instance, in 2019, 5,000 substandard gas cylinders worth N51.3 million were destroyed by the organisation.

Also in August 2020, substandard LPG cylinders and roofing sheets worth over N450 million said to have been imported from China and Turkey were seized and destroyed.

Similarly, in January  2021, seven containers of substandard Liquified Petroleum Gas (LPG) cylinders, tyres and other goods worth about N300 million were destroyed.

Unfortunately, many of these substandard products would have found their ways into open markets and largely into Nigerian homes.

In one of her interviews on the dangers of substandard LPG cylinders in homes, a former National Coordinator of Women in LPG, Mrs Nkechi Obi, had expressed worry about the consequences of importing fake and substandard cylinders into the country.

According to her, unrestricted importation of fake cylinders could be likened to bringing deadly explosives into Nigerian homes.

“Using fake cylinders also poses severe dangers to our womenfolk, who face daily risk of death or injury in the event of the explosion of the fake cylinders,’’ she stated.

But apart from fake gas cylinders in circulation, another risk in the LPG market is non-adherence to safety standards. Operations of black marketers, siting of gas refill outlets in unauthorized places such as residential areas.

To corroborate this assertion, the Department of Petroleum Resources (DPR) recently stated that non-compliance with safety guidelines by retail outlets was a leading cause of gas explosions.

According to the Delta State, Zonal Controller of DPR, Antai Asuquo, gas dealers in the black market were particularly culpable and should be held accountable for the incidents.

The Clean Stove report also asserted that addressing issues related to safety can both be an asset and liability to the growth of LPG as a widespread and viable clean cooking fuel.

The report argued that unsafe practices around LPG can impede investment flows, business growth, commercialization and market entry.

“For LPG businesses and large multinationals, in particular, the risks and costs associated with LPG safety has reduced appetite for the sector, thereby reducing the uptake of LPG, particularly in sub-Saharan Africa.

“In order to build a dynamic and financially sustainable clean cooking industry, for both LPG and other clean cooking fuels, ensuring effective safety best practices is critical,” it said.

 

DPR’s guidelines for the operation of downstream gas plants

Amidst reoccurring incidences of gas explosions, the DPR released guidelines for the operation of downstream gas plants. It said companies seeking to establish gas-dispensing facilities would be required to obtain three approvals and licences, among others, before commencing operations.

Sections I and II of the guidelines, which speak to the establishment and standard operations of LPG refilling facilities and retailers outlets in Nigeria, spelt out the minimum requirements, procedures and conditions to be fulfilled before the grant of approvals or licences for the construction, installation, modification, takeover, relocation and operations of downstream gas facilities in Nigeria.

It said the guidelines were developed to enhance gas penetration and utilization, enhance operational safety as well as ease of doing business in the oil and gas sector.

It said: “Companies intending to establish these facilities must satisfy all necessary requirements stipulated by DPR and obtain the underlisted applicable approvals: site suitability approval; approval to Construct (ATC)/approval to install; and licence to operate.

“Necessary amenities and equipment like functional automated/manual leak tester, functional fire alarm system, and mounted gas detectors, adequate fire water storage and sprinklers, perimeter fence with firewall amongst others must be provided in the facilities.”

He stated that the objectives of the guidelines were to ensure that the baseline standard regarding Health, Safety and Environment, (HSE) is adhered to.

With the Federal Government’s drive to improve the safety of LPG usage, there is a need for the DPR to work closely with SON so as to establish effective monitoring on gas cylinder production and import throughout the LPG value chain.

This will, no doubt, improve the safety of LPG usage and positively affect perception on customers’ side.

This may involve banning consumer ownership of gas cylinders as once proposed by the Federal Government, and transiting to market ownership.

 

This story was produced under the NAREP Oil and Gas 2021 fellowship of the Premium Times Centre for Investigative Journalism.

 

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