Nidogas Company Limited and Vitol agree to form a joint venture partnership to create the nation’s premier gas company…Navgas
Nidogas Company Limited, Nigeria’s premier liquefied petroleum gas (LPG) company, today announced an agreement with the Vitol Group, a large and widely diversified global commodity trading company headquartered in Switzerland. The agreement establishes a joint venture gas company, Navgas Ltd that will be engaged in the importation, bottling and retail of LPG. The new company will combine Nidogas’ more than 50 years of experience in the bottling, distribution and retailing of LPG to Nigerian consumers and Vitol’s large global trading network. It is expected that the joint venture will create the leading gas supplier and marketer in Nigeria; with storage facilities strategically situated on Nidogas’ Apapa premises that can store up to 8000 metric tonnes of LPG, arguably the largest on the West African coast. The facility is expected to achieve an annual throughput of over 250,000 metric tonnes of LPG, and is further complemented by Nidogas’ distribution infrastructures in multiple states across Nigeria for quick and efficient marketing and delivery of LPG to Nigerian consumers. A total investment of $50Million (N6.2Billion) will be invested in the project.
The formation of Navgas is motivated by the need to take advantage of the numerous opportunities in Nigeria’s burgeoning gas sector and is in line with the Federal Government’s initiative to deregulate the sector, develop downstream infrastructure and make gas readily available to consumers. The total per capita usage of gas in Nigeria is approximately 0.5 kg per annum compared to South Africa’s consumption of 18.25 kg per annum.
Managing Director of Nidogas Company Limited, Mr. Renato Awani, described the joint venture as a welcome development and key to his company’s strategy of becoming the leading gas marketer in Nigeria.
The joint venture will benefit from Vitol’s worldwide distribution and sales network.