NLNG: We’ll supply 100% of LPG production to domestic market

Nigeria Liquefied Natural Gas (NLNG) Limited says it will supply 100 percent of its liquefied petroleum gas (LPG) production — propane and butane — to the Nigerian market.

Andy Odeh, general manager, external relations and sustainable development for the NLNG, disclosed this in a statement on Thursday.

Odeh said the company would prioritise the domestic market for all butane output, better known as cooking gas.

He said NLNG had 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.

“These initiatives are designed to increase LPG availability in Nigeria, diversifying its uses and support the Federal Government’s Decade of the Gas initiative,” the statement reads.

Speaking on the development, Philip Mshelbila, managing director of NLNG, said the announcement marked the company’s strong commitment to the continued growth of the domestic LPG market.

Mshelbila said it also showed the company’s passion to boost the utilisation of one of the world’s most adaptable energy sources.

He said natural gas could help drive the economy by providing cooking gas for homes, supporting industrialisation, powering mobile cell sites and complex transportation systems.

He added that it would also impact food supply through its usage for fertiliser production and increasing power supply to both homes and industries.

“Committing 100 per cent of our LPG supply is a major milestone in our journey of domestic gas supply,” Mshelbila said.

“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 tonnes to over one million tonnes market size annually by the end of 2020.

“In 2021, we increased our LPG supply commitment from 350,000 metric tonnes (or 28 million 12.5kg cylinders) to actual delivery of 400,000 metric tonnes (or 32 million 12.5kg cylinders), thereby directing most of our products into the domestic market.

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

NLNG is an incorporated joint venture owned by four shareholders, namely, the federal government of Nigeria, represented by the Nigerian National Petroleum Corporation (49 percent), Shell Gas B.V. (25.6 percent), TotalEnergies Gaz & Electricité Holdings (15 percent), and Eni International N.A. N. V. S.àr.l (10.4 percent).

Over the past couple of months, there has been a continuous increase in cooking gas prices in Nigeria.

In November 2021, the National Bureau of Statistics (NBS) said residents in Ondo, Oyo and Osun states paid above N8,000 for 12.5kg of cooking gas.