FThe Federal Government has signed an agreement with its United States counterpart for a technical assistance to revitalize the Nigerian Liquefied Petroleum Gas (NLPG) otherwise known as domestic cooking gas industry.

The Minister of State for Petroleum Resources, Dr. Edmund Daukoru signed the agreement on behalf of the Nigerian Government, while US Ambassador to Nigeria, Mr. John Campbell, signed on behalf of his country.

The technical assistance, estimated at about $562,000 about 75 million Naira, would be spent on technical, financial, environmental, policy and regulatory framework to improve activities in the industry.

Speaking at a brief signing ceremony for the agreement, Daukoru commended efforts of the US Trade and Development Agency for providing the assistance. He said the gesture was an addition to the government's efforts at reactivating the industry.

He lamented that Nigeria, despite its abundant deposit of natural gas, had the least consumption per person per annum of 0.4 kilogrammes of LPG along the West African coast. Yet Nigeria, according to him, has the capacity to produce about 600,000 metric tones per annum of LPG from its four refineries most of which functioned at below their installed capacity.

This is in addition to other LPG sources like the OSO Condensate Plant of the ExxonMobil, Nigerian National Petroleum Corporation/Texaco Natural Gas Plant and the Nigerian Liquefied Natural Gas, all of which produce LPG as bye products.

Daukoru, however, said the country was unable to maximize the benefits derivable from these sources and that consumption level estimated at about 100,000 metric tones in the 1980s came down to about 54,000 metric tones last year.

He explained that the reduction was bound to have implications on the environment and quality of life among Nigerians as they sought alternatives to domestic cooking gas.

Efforts by the government ahead of the technical assistance being offered by the US Government include a World Bank-Sponsored study on the industry, setting up of a Presidential Steering Committee, formation of traders association and 30 percent import duty waiver.

He listed aspects of the industry which would be strengthened as including the building of new storage facilities and filling plants, upgrade of the existing facilities and provision of distribution networks.