Business - News - January 14, 2022

Nigeria LNG moves to resolve bottlenecks in supply to domestic gas market

MEDIATRACNET

set to supply 100% of its LPG production into Nigeria

To help resolve the perennial problem of supply of cooking gas in the country, the Nigeria Liquefied Natural Gas (NLNG) Limited says it will give priority attention to the supply of the commodity to the domestic market.

The company said on Thursday its Board of Directors has already approved the supply of 100 percenr of its production od propane and butane, otherwise called Liquefied Petroleum Gas (LPG) to the domestic market.

Following the supply of its first propane cargo into the domestic gas market three months ago, the company said it has developed an arrangement to guarantee sustainable supply.

Propane is used in cooking gas blending as well as in agro-allied, autogas, power and petrochemical sectors of the economy to further deepen gas utilisation in Nigeria.

The General Manager, External Relations & Sustainable Development, Andy Odeh, said these initiatives were designed to increase LPG availability in Nigeria, diversify its uses and support the Federal Government’s “Decade of Gas” initiative.

The NLNG is currently the highest single supplier of LPG into the domestic market, with an estimated 400,000 metric tonnes supplied in 2021.

Odeh quoted the Managing Director/Chief Executive Officer of NLNG, Philip Mshelbila, as saying the decision to prioritize supply to the domestic market is to demonstrate the company’s strong commitment to the continued growth of the domestic LPG market.

Mshelbila said the decision is also to show the NLNG passion to increase utilisation of one of the most versatile energy sources in the world

He said the company was inclined towards helping to build a strong economy based on the abundant gas resources Nigeria is blessed with.

Natural gas, he said, could help drive the growth of the economy, by providing cooking gas for homes, supporting industrialisation, powering mobile cell sites and complex transportation systems, impacting food supply through its usage for fertiliser production, and increasing power supply to both homes and industries, while reducing the country’s carbon footprints.

“Gas, as the cleanest of the fossil fuels, has become an essential energy source to be reckoned with during this energy transition period,” Mshelbila said.

Other countries, he noted, were revolutionising their energy industry, to cut down on carbon emissions drastically, he added.

“Nigeria should not be left out in this drive, considering its abundant gas resources. Gas is essential for life and living at the moment, because it can support everything we will need to develop our economy and create better living standards for Nigerians. We need to change the narrative, and NLNG is being pragmatic about it.

“We are ardently following up on the commitment we made in March 2021 at the NLNG-sponsored pre-summit conference of the Nigeria International Petroleum Summit (NIPS) 2021 organised by the Federal Ministry of Petroleum Resources to support the Decade of Gas declaration by the Federal Government.

“We are driven by our vision to remain a globally competitive LNG company, helping to build a better Nigeria and are making a reality of our collective dreams that one day we can switch all cooking fuels to gas, and power our vehicles with gas as encapsulated in the government’s National Gas Expansion Programme and the Autogas Policy,” he said.

“Committing 100% of our LPG supply is a major milestone in our journey of domestic gas supply,” the MD said.

In 2007, the NLNG supplied its first Butane (LPG) cargo into the domestic market, 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, the company increased its LPG supply commitment from 350,000 metric tonnes, or 28 million of 12.5 kilogramme cylinders, to actual delivery of 400,000 metric tonnes (or 32 million of 12.5kg cylinders) thereby directing most of its production into the domestic market.

However, considering that this volume proved insufficient to meet the demand, the company resolved to increase the supply to 100 percent of its LPG production to the domestic market.

NLNG is an incorporated Joint Venture owned by four shareholders, namely, the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation (49%), Shell Gas B.V. (25.6%), TotalEnergies Gaz & Electricite Holdings (15%), and Eni International N.A. N. V. S.àr.l (10.4%).

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