NLNG to dedicate 100% cooking gas supply for domestic market

January 14, 2022
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  • May crash high prices

The Board of Directors of Nigeria LNG Limited (NLNG) has approved the supply of 100 per cent of the company’s Liquefied Petroleum Gas (LPG) production (Propane & Butane) to the Nigerian market.

Consequently, NLNG will prioritize the domestic market for 100% of its Butane production, otherwise known as cooking gas, a statement by NLNG said on Thursday.

The NLNG 100% supply into the local market may crash the price of cooking gas which has been rising since March 2021 as suppliers blamed high foreign exchange, supply and tax issues.

This is coming 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 Nigeria.

NLNG is currently the highest single supplier of LPG into the domestic market, with an estimated 400,000 metric ton (MT) supplied in 2021.

The Managing Director/CEO of NLNG, Dr Philip Mshelbila, said the announcement marked the Company’s strong commitment to the continued growth of the domestic LPG market and its passion to increase utilisation of one of the most versatile energy sources in the world.

He said, “Committing 100% of our LPG supply is a major milestone in our journey of domestic gas supply. We supplied our first Butane (LPG) cargo into the domestic market in 2007, which helped to develop over the years the LPG industry in Nigeria from less than 50,000 tons to over one million tons market size annually by the end of 2020.”

He also said, in 2021, we increased our LPG supply commitment from 350,000MT or 28m of 12.5kg cylinders to actual delivery of 400,000MT or 32m of 12.5kg cylinders, thereby directing most of our production into the domestic market.

“But this was not enough for NLNG, hence this commitment to do all that we possibly can and supply 100% of our LPG production to the domestic market,” Mshelbila added.

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