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  • Oil & Gas - News
  • Updated: January 28, 2022

NLPGA Commends NLNG Over LPG Supply To Local Markets

The Nigeria Liquefied Petroleum Gas Association (NLPGA) has commended Nigeria LNG Limited (NLNG) over its decision to supply 100 percent of the company’s LPG production to the local market.

NLPGA President Nuhu Yakubu, in a statement, maintained that the decision is a major milestone coming just three months after the company supplied its first Propane cargo into the domestic market and has developed a scheme to sustainably supply Propane for usage in cooking gas blending as well as in agro-allied, autogas, power and petrochemical sectors of the Nigerian economy to further deepen gas utilisation in the country.

“The NLPGA applauds this announcement as it marks a strong commitment of NLNG to the continued growth of the domestic LPG market, which has over the years had far-reaching positive multiplier effects on the economy. Evidently, this approach will further increase the supply and utilisation of LPG in the country,” Yakubu said.

Yakubu stated that the association will continue to work with NLNG to build a strong economy, through its various domestic gas supply initiatives, in support of Nigeria’s quest for accelerated gas-based industrialisation with the gas resources that it is abundantly endowed with.

He regretted that in recent months past, Nigerians have had to pay significantly more to buy cooking gas owing to supply disruptions.

However, he expressed confidence that this supply intervention move by NLNG is expected to free up more volumes with some cushioning effect on the high price of cooking gas, subject however to its realistic production output as determined by other factors.

NLNG intervened in stabilising domestic consumption of gas with 50,000mt/annum LPG allocation for domestic market supply and in 2007, deployment of the mother and daughter vessels ship to ship arrangement at a cost to the company, guarantee volumes delivery to the domestic market.

In 2008/2009, NLNG sourced new medium gas carriers and commenced the use of MGCs for more efficient LPG delivery to the domestic market and in 2008, NLNG increased LPG allocation to the domestic market from 50,000mt to 150,000mt/annum. Still, in 2013, NLNG increased LPG allocation to the domestic market from 150,000mt to 250,000mt/annum and in 2016/2017, the firm further increased LPG allocation to the domestic market from 250,000mt to 350,000mt/annum.

Furthermore, in 2019/2020, NLNG increased LPG allocation to the domestic market from 350,000mt to 450,000mt/annum and in 2022, NLNG increased LPG allocation to the domestic market, from 450,000mt/annum to 100 percent production.

“NLNG financed security and safety repair maintenance works at NOJ and PWA LPG jetties in Apapa, to enable increased supply frequency through multiple berthing facilities and incentivised development of LPG coastal depot in Port Harcourt, South-South Nigeria, to reduce the delivery cost of LPG to the region where it is largely produced,"

“NLNG has maintained a favourable foreign exchange policy, which allows its LPG off-takers pay for its USD priced LPG cargos in Naira, at CBN official exchange rates, at a time when such generosity is no longer fashionable and also aggregate capacity of coastal storage developed since NLNG’s intervention has increased geometrically from 7000MT in 2007 to almost 100,000MT in 2021, with the attendant thousands of jobs created due to supply stability of LPG across the entire LPG value chain,” Yakubu said.

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Lawrence Agbo
Lawrence Agbo

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