NLNG Seeks To Boost LPG Supply By 40% To Meet Rising Domestic Demand


Lagos – The Nigeria Liquified Natural Gas Limited (NLNG), has concluded plans to increase the supply of liquefied petroleum gas, otherwise known as cooking gas, from 250,000 tonnes to 350,000 tonnes, an increase of 40 per cent this year.

Mr. Tony Attah, Managing Director of the company, made the disclosure at the presentation of the ‘facts and figures on NLNG 2017’ in Lagos that the development was sequel to the determination of the organisation to meet the rising demand in the domestic market.

He said that already, the company has signed Sales and Purchase Agreements (SPAs) with Nigerian companies to ensure that LPG is successfully lifted to the domestic market.

Attah pointed out that the company commenced the supply of cooking gas to the domestic market in 2007 when refineries became challenged and supply was grossly inadequate, thus ensuring LPG supply availability and affordability in the domestic market.

He stated that the intervention, which is in line with company’s vision of “helping to build a better Nigeria”, has significantly contributed to the stimulation and development of the domestic LPG market both in terms of increased private sector investment across the LPG value chain, as well as increased consumption which grew to over 320,000 metric tonnes in 2015.

Attah also disclosed that the intervention has helped to stabilise the price of cooking gas in the country.

Attah indicated that the domestic LPG supply scheme was based on a Delivered Ex Ship (DES) model, with LPG delivered to the market via a dedicated NLNG-chartered LPG tanker.

“In line with our commitment to ensure reliability of supply in the domestic LPG market, NLNG was initially committed to make available up to 150,000 metric tonnes of LPG for the Nigerian market annually.

“The domestic LPG supply scheme has been an outstanding success. It has led to increased reliability of supply, which has in turn positively impacted end user prices, and attracted significant private sector investments in infrastructure across the value chain.

“The company is collaborating with the government at the highest level to develop and implement expansion strategies that will grow the market and expand the adoption of LPG as domestic energy source of choice. In The Future In line with its profile as a growing organisation, NLNG will continue to consolidate its position as one of the major and reliable suppliers of LNG in the world”, he said.

“NLNG’s expansion plan under the proposed Trains 7 & 8 projects, which will raise the liquefaction capacity to over 30 mtpa, continues to make progress toward a Final Investment Decision (FID),” Attah added.


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