Newsletter 31/07/2019

Welcome Note

Nuhu

Mr. Nuhu Yakubu

President

Nigeria Lique ed Petroleum Gas Association (NLPGA)

It is our pleasure to collaborate with LPG Summit to host the Nigeria LPG Summit 2019 in Lagos this year. We believe that the Nigerian LPG market plays a pivotal role in setting the standard for the entire African LPG industry. It is therefore our responsibility to unify all major players and ensure that we are all working together towards the common goal of developing a sustainable LPG industry for all.

On behalf of the NLPGA and the Nigerian LPG Industry, I would like to invite international players, foreign delegates and investors who are keen to help grow the LPG industry in Nigeria to participate in the Nigeria LPG Summit 2019.
It is our goal to bring value to all attendees by providing a single platform for all industry players to learn, meet, discuss, forge partnerships and take the LPG industry in Nigeria to new heights. It is only through such events that we can, as an industry, ensure that the path ahead is one with a bright blue flame in all houses and all communities, from urban to rural and everything in between.

Join us as we discuss some of the most important topics facing the LPG industry in Nigeria and see how you can play a role in the development of the LPG industry in one of the fastest growing LPG markets in the world.

We look forward to seeing you at the event from 26 -27 November at the Federal Palace Hotel in Lagos later this year.

Interview: Ahsif Ahamed, Sales Manager of Hexagon Ragasco AS

Ahsif Hexagon

Ahsif Ahamed
Sales Manager
Hexagon Ragasco AS

Hexagon Ragasco

1. Describe your company’s  recently  milestone

Hexagon Ragasco has sold as at this year 16 million composite LPG cylinders in over 80 countries. This is a milestone we are very proud of as it reinforces our global leadership position within composites.

2. According to Energy, Water and utilities Regulatory  Authority (EWURA), Tanzania imported  120,961 MT of LPG as at December 2018. This is an increase of 13% compared to 107,0883MT imported in 2017.

This is huge number and testimony that LPG marker is growing at rapid pace in Tanzania, what are some initiatives that  Hexagon Ragasco has in place  in order to meet the high demand of LPG in Tanzania ? 

Our presence in Africa has become more important in the course of the past years and we wish to continue working with Tanzanian regional stakeholders and LPG users to spread the word about our innovative and safer technology along with the real advantages offered by our award-winning cylinder. The lighter weight, translucency and rust-free characteristics of our cylinders, combined with their increased safety can positively impact and change the way LPG is used in Tanzania.

3. LPG summit returns to Africa for the 6th time running,  the summit is once again to be held in Dar es salaam on 3-4 July 2019 with Hexagon Ragasco fully supporting it as an official sponsor of the summit. What are you expectation for this important gathering.

The Summit gives attendants the opportunity to meet with and renew acquaintances with the movers and shakers of the industry and be informed of the new trends and happenings in the market. We are looking forward to meet with key influencers, decision makers in Tanzania and with key LPG distributors in Africa to renew and strengthen our partnerships. We are also excited about presenting our composite cylinders, our state of the art technology and welcoming visitors to our booth.

LPG Market In Zanzibar:
Rabia Abdalla Hamid, Ag. Director of Economic Regulation Zanzibar Utilities Regulatory Authority

Rabia Abdalla

Rabia Abdalla Hamid
Ag. Director
Economic Regulation Zanzibar Utilities Regulatory Authority

LPG MARKET IN ZANZIBAR

In the last 5 years, Zanzibar Islands has shown a remarkable change in acceptability of LPG as a major cooking power for households replacing coal, fire woods and even electricity itself. There is a steady growing demand for LPG as a result of intensive public awareness on the safety, convenience, reliability, and affordability of using the product. Increasing concerns on environmental impact by the department of environmental management (ZEMA) and continuous efforts by the market players in the reservation of the remaining forest reserves in Zanzibar, has all played a major role in the increase demand for LPG ahead of the other fuel sources.

 

LPG MARKET PLAYERS

Zanzibar has so far been supplied LPG by only four recognized LPG Marketing companies, out of those LPG marketing companies three of them are registered and operating in Tanzania mainland and the head offices are situated in Dar es salaam. Only one company is fully registered and operating in Zanzibar by procuring LPG from Dar es Salaam. The four operating companies in Zanzibar are as follows.

  • ORYX GAS

ORXY is a Liquefied Petroleum Gas Company that was licensed to carry out LPG business activities in Zanzibar, which was established in the year 2015. ORXY has total storage Capacity of 300 MT, its mode of importation is through bulk procedure and cylinders in trucks from Tanzania mainland to Zanzibar; the approximate monthly average importation is around 352MT and the monthly average sales in volume are 200MT.

  • V-GAS

V- GAS is a Liquefied Petroleum Gas Company that was licensed to carry out LPG business activities in Zanzibar, which was established in the year 2016. V-GAS has total storage Capacity of 44MT, its mode of importation is through bulk procedure from Tanzania mainland to Zanzibar; the approximate monthly average importation is around 23MT and the monthly average sales in volume are 20M

  • MIHAN GAS

MIHAN is a Liquefied Petroleum Gas Company that was licensed to carry out LPG business activities in Zanzibar, which was officially established in the year 2017. MIHAN has storage Warehouse where they store their company cylinders, its mode of importation is through cylinders by ark transportation procedure from Tanzania mainland to Zanzibar; the approximate monthly average importation is around 30MT and the monthly average sales in volume are 25MT.

  • LAKE GAS

LAKE is a Liquefied Petroleum Gas Company that was licensed to carry out LPG business activities in Zanzibar, which was established in the year 2016. LAKE has storage Warehouse where they store their company cylinders, its mode of importation is through cylinders by ark transportation procedure from Tanzania mainland to Zanzibar; the approximate monthly average importation is around 33MT and the monthly average sales in volume are 32MT.

 

LPG CHARGES UP TO DAR ES SALAAM

S/NOINSTITUTION/ITEMCHARGESAMOUNT
1Weighted Average Platt’s FOB  
2Weighted Average Premium as Per Quotation (Freight + Insurance + Premium)  
3Handling ChargesHandling Charges2 USD Per CBM
3Railway Development levy RDL (1.5 % of CIF)  
4Customs Processing Free CPF (0.6% of FOB)  
LPG INVOLVED CHARGES IN ZANZIBAR
   
5TransportationFreight2,000,000
6Ministry of Trade Industry ZanzibarTrade Levy5% on CIF
7Zanzibar Revenue BoardStamp Duty3% on CIF
8Government Chemist (GCLA)Head Chemist0.50 % on CIF
9Zanzibar Port CooperationWharf age1.5 to 4.5 USD per CBM
10Tanzania Port AuthorityWharf age2 USD per CBM
11Tanzania Port AuthorityCustoms
12Ministry of Trade ZanzibarCorridor Levy2 USD per CBM
13Fire BrigadeFire Charges2 USD per hour
14MunicipalRetail level

 

SUPPLY CHAIN OF LPG IN ZANZIBAR MARKET

The suppliers of this product in Zanzibar are all from the mainland since Zanzibar has no infrastructure to import LPG directly. This is one the reasons that contribute to higher price for LPG in Zanzibar per cylinder compared to Mainland, this price is relatively higher in Pemba than Unguja due to the logistical costs involved.

The chain includes the following the following players;

  • Importers

Importers are those who import LPG directly from the Tanzania mainland to Zanzibar through either bulk or cylinders. In Zanzibar there are only two importers who are Oryx and V-gas.

  • Super Dealers

Super Dealers are those who receive the LPG directly from the importers either in bulk or cylinders. Here in Zanzibar there are currently two Super Dealers who are Oryx, V-gas, Mihan and Lake

  • Dealers

Dealers are those who are receive LPG from Super Dealers in Cylinders. In Zanzibar there are mainly Oryx, V-gas, Lake, Mihan and O-gas.

  • Retailers

Retailers are those who sell LPG to the consumers for domestic consumption and they procure the LPG from the dealers and they are mostly scattered around different areas in Zanzibar.

 

TRANSPORTATION OF LPG TO ZANZIBAR

Unlike petroleum oils where the products are transported from Dar es Salaam via shipment of Mt. Mkombozi, Mt. East wind and Mt. United spirit to Zanzibar as LPG is shipped from Dar es Salaam as well. The mode of transportation of LPG from Tanzania Mainland to Zanzibar is through ferry. Bulk cylinders trucks and carriage tracks with filled cylinders are either imported via ferry liners and in some cases via dhows. The volume of LPG imported from Dar es Salaam to Zanzibar is averaged at about 300MT monthly.

With this remarks, I would say that Zanzibar has the potential to invest in on LPG product and especially after the environmentalist strategy to ban the consumption of charcoal by year 2020. Mangapwani North Zanzibar is a site gazette for the investment of oil and gas projects that will be given to potential oil and gas investors!

6th Africa LPG Summit Post Show Report

LPG Summit Logo

The 6th Africa LPG Summit 2019 in Tanzania saw 320+ people from all over Africa attend the conference including delegates from Sierra Leone, The Democratic Republic of Congo, Mozambique, Kenya, Rwanda, Uganda, Djibouti, Nigeria and South Africa.  The event sponsored by Oryx Energies was supported by the Petroleum Bulk Procurement Agency (PBPA) and the World LP Gas Association (WLPGA).

It was an honour to have Dr. Medard M. Kalemani, Minister of Energy in Tanzania, give the opening keynote to kick off the event.

The Minister expressed that, “What is needed is a win-win situation for both the private sector and the government, so that people of Tanzania can be the ones who reap the greatest rewards from the use of LPG and he hopes that there will be further collaboration between governments in the region with industry players to promote use of LPG as a safe, cleaner and environmentally friendly form of energy.”

Numerous panels of experts weighed in on pertinent questions over the 2 days, discussing  issues that the LPG industry is facing in Tanzania such as; supply and demand, increasing adoption, financing, safety and innovation.

VIEW THE REPORT (Click Here)

Join us at the World LPG Forum and Liquid Gas Europe

WLPGA Logo

This year, the World LPG Association & Liquid Gas Europe are joining together from September 24th – 27th 2019 to bring the biggest LPG event in the world, the 32nd World LPG Forum & 2019 European Congress, to Amsterdam. Traveling the globe each year, this influential event combines not only a high-level conference and a major exhibition but also a choice of dedicated smaller summits and dynamic side events which cover the entire industry. During the week of the event, delegates, exhibitors, sponsors, students, and visitors will be able to meet with key players in the LPG industry through networking opportunities or by attending the various sessions and presentations around the exhibition hall, or by visiting the exhibition.

 

WHAT CAN YOU EXPECT?

Sessions and Exhibition

During the event, delegates will have access to five key sessions which follow the theme of the event and the roundtable session, ‘Energy in Transition’ Hear from leading industry stakeholders from around the world to discuss their views. ‘Session 1: Supply in Transition’ will look at the supply growth for LPG worldwide. The demand for LPG is also growing at an impressive rate, which will be analysed during ‘Session 2: Demand in Transition’. ‘Session 3: LPG in the Digital World’ will discuss the need for the LPG industry to increase its use of the latest digital technologies. In ‘Session 4: Communications: From Reactive to Proactive’, hear from communications specialists on how the LPG industry can improve their outreach and strengthen their voice throughout the world. Finally, the last session ‘From Transition to Destination: What does the Future Hold?’ will gather the current and incoming Presidents and Vice Presidents of WLPGA & Liquid Gas Europe to give their views on the future of LPG.

In between sessions, delegates also have the option to explore the biggest exhibition ever, which will host over 200 exhibiting companies and their booths, including the Autogas Village at the entrance of the venue which will display LPG cars and tanks. This is the ideal opportunity to network with new and leading companies in the industry from around the world.

Global Technology Conference

The Industry’s 12th Global Technology Conference (GTC) will take place on Tuesday 23rd September 2019.

GTC is the only global conference dedicated to technology and innovation in the LPG industry. The Conference will showcase successful marketing and implementation of these new technologies, equipment, and ideas from the world.

LPG for Development

The third LPG for Development Summit (LPG4Dev), co-organized with the Global LPG Partnership, will also take place on September 24th, 2019. This year’s focus will be on the role of LPG in improving health outcomes, in accordance with World Health Organization Guidelines for Emissions Reductions for Health.

Autogas Day

The first international edition of the Autogas Day will take place on Friday September 27th, 2019, highlighting the opportunities for Autogas at a global level. This will provide an exceptional opportunity to hear and share the latest Autogas innovations, market situations, experiences, as well as networking opportunities.

WINLPG Knowledge Exchange

The Woman in LPG Knowledge Exchange will take place on Thursday 26th September and will be a vibrant exchange of best practices. This is an exceptional opportunity to network with your global peers and the opportunity to learn more about the influence and positive impact woman have for the LPG industry.

World LPG Challenge’19

The World LPG Challenge ’19 is a call to companies and startups as a first edition for the World LPG Forum and European Congress. This challenge engages the LPG industry in order to solve the proposed challenge for this year: Safety & Training. The winners will be announced on Thursday 26th September during Session 3: LPG in the Digital World.

Cybersecurity LPG Workshop

HudsonCyber along with AON, will deliver and facilitate a two-part workshop that will include a general cyber risk awareness briefing followed by an interactive exercise.  The workshop is designed to increase awareness of cyber risk and fill in the knowledge gaps for executive & non-executive and information & non-information technology staff.

Exceptional Energy Stage

On Wednesday 25th & Thursday 26th September, companies and individuals will be presenting on various subjects in the middle of the exhibition area. The Stage will also host the Snapshots presentations dedicated to LPG in Humanitarian settings, LPG’s contribution to the Sustainable Development Goals and, The potential for LPG in heating.

Power Plays

On Thursday 26th September, three parallel Power Plays will take place: Making LPG the New Marine Alternative Fuel, Making Safety Interesting and Taking BioLPG to the Next Level. These are intensive roundtable discussions, separate from the regular sessions, which delegates can register for on a first come first served basis.

Social Events

Throughout the week there are also great social and networking gatherings. On Sunday 22nd September, WLPGA Associations can attend the Associations Executive Cocktail. The following day, on Monday 23rd September, WLPGA & Liquid Gas Europe Members can meet for the Members’ Dinner. Tuesday 24th September is the official opening of the exhibition, and delegates can gather together in the exhibition hall for drinks and snacks for the Exhibition Opening Cocktail. Finally, the official event Gala Dinner takes place on Wednesday 25th where registered guests can enjoy an elegant dinner in the Concertgebouw.

 

HOW CAN YOU LEARN MORE?

If you want to read more about what you can expect at this year’s event, check out the website at https://www.worldlpgforum-aegpl2019.com/.

Don’t miss out on this great opportunity to introduce yourself to the LPG industry and to learn more on how you can get involved.

For more information, please contact Ms Esther Assous, WLPGA Events Director, at eassous@wlpga.org

LPG Summit's Event in 2019

Nigeria LPG Summit 2019

26 – 27 November, Federal Palace Hotel, Lagos, Nigeria