• Oil & Gas - News
  • Updated: October 26, 2022

NLNG Requests Additional Investments To Assure Steady Supply Of LPG

The Nigeria LNG Ltd. (NLNG) has urged participants in the local liquefied petroleum gas (LPG) value chain to spend money on the product's supply to ensure a dependable and consistent supply.

To commemorate 15 years of domestic LPG delivery in collaboration with the Nigerian LPG Association, the firm made the announcement in a statement released by Andy Odeh, its general manager of external relations and sustainable development (NLPGA).

The investment in supplies will inspire commitment along the value chain, including vertical integrations, the announcement quoted NLNG Managing Director Dr. Philip Mshelbila as saying.

Subject to gas availability and gas quality, Mshelbila stated that NLNG would continue to invest in "Train 7," which, when finished, would increase its present capacity by around 35%.

Other domestic LPG manufacturers, he continued, would have to invest in order to make their product available to the home market rather than exporting it.

He said that as a conscious government initiative to promote producers' non-export of LPG, the interventions would lower the switching cost to LPG, stimulate greater adoption, as well as lower the cost of capital to support infrastructure construction and growth.

Other essential measures, according to Mshelbila, include making regulatory requirements and instructions clear, coordinating government enforcement agencies, and widely disseminating information on safe LPG handling and usage procedures.

“Supply and gas gathering initiatives faced major challenges in recent times, and this is due to floods ravaging operational sites of NLNG’s feedgas suppliers,” he said.

He said there had been a state of emergency requiring declarations of force majeure.

The NLNG helmsman, however, assured continued operations at the company’s production plant.

“We continue to load and ship LPG to the domestic market.

“Therefore, we reassure Nigerians of our ongoing operations and look forward to an urgent return to normalcy.

“Prior to the flooding, we were contending with the unrelenting effects of crude oil theft, which directly and severely impacted the supply of associated gas to our plant by the upstream producers.

“We recognise the strides being made to address this by the government and its agencies and hope that this will soon translate into improved gas supply to our plant in Bonny,” he said.

Mshelbila said LPG supply was why the NLNG Board of Directors decided to intervene, increasing supply from 50,000 in 2007 tonnes to 150KT to 100 per cent, accounting for about 40 per cent of the domestic LPG (DLPG) market.

“Over the 15 years since 2007, NLNG has played a critical role in deepening the DLPG market with a reliable supply of LPG.

“Expanding access to energy that is cleaner, more reliable, and affordable, the number of its off-takers increased from seven at the onset to 42 today.

“The LPG ecosystem witnessed exponential growth across the value chain,” said Mshelbila.

He continued by saying that the use of kerosene, firewood, and charcoal has significantly decreased as a result of the improved availability and penetration of DLPG.

He explained that by doing this, the risk of respiratory illnesses brought on by smoke inhalation was decreased, and this increased compliance with the worldwide movement toward a greener environment and fewer GHG emissions.

“Today, the Nigeria Liquefied Petroleum Gas Association (NLPGA) in collaboration with Nigeria LNG Ltd. (NLNG) is celebrating the 15th anniversary of uninterrupted supply of domestic LPG in the country.

“The intervention has seen the supply of LPG grow from 60,000MT in 2007 to over 1.3million MT in 2021 (a growth of over 1,000 per cent).

“Today, the Nigerian LPG market is adjudged the fastest-growing globally.

“This scheme has encouraged massive investments in LPG infrastructure and has created over 150,000 jobs in the sector and resultant increased tax revenue for the government,” he said.

According to him, the Federal Government’s Decade of Gas programme has further helped in driving interest in propane, evidenced by NLNG’s startup of domestic propane, which witnessed its first delivery in September 2021.

“NLNG has invested in a 13,000MT dedicated LPG carrier and security escort vessels facilitating efficient deliveries to Lagos and Port Harcourt terminals.

“It invested in the refurbishment of the Lagos receiving terminal improving coastal delivery of LPG.

“It has also invested in throughput capacity at the Port-Harcourt stock gap receiving terminal,” he added.

He commended the NLPGA for having maintained and supported the value chain for 15 years.

Four shareholders control NLNG, including the Nigerian National Petroleum Company Limited (49%) Eni International N.A. N. V. S.àr.l. (15%) TotalEnergies Gaz & Electricite Holdings (25.6%) and Shell Gas B.V. (10.4 per cent).

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Lawrence Agbo
Lawrence Agbo

Lawrence is a vibrant digital journalist that loves creating SEO-focused content that drives busines...

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