NLNG channels 100% gas to the domestic market

The Nigeria Liquified Natural Gas (NLNG) Limited says its board of directors has approved the supply of 100 percent of the Liquefied Petroleum Gas produced by the company to the Nigerian market.

NLNG said it would prioritize the domestic market for 100 percent of its butane (cooking gas) production instead of foreign exports.

It noted that it supplied its first propane cargo into the domestic market three months ago.

The company said it 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 to further deepen gas utilization in the country.

The initiatives were designed to increase LPG availability in Nigeria, diversify its uses and support the Federal Government’s Decade of the Gas initiative.

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

The Managing Director and Chief Executive Officer, 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 utilization of one of the most versatile energy sources in the world.

He said, “Committing 100 percent of our LPG supply is a major milestone in our journey of domestic gas supply. We supplied our first butane 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 1 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.”

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