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Gas Production: NLNG To Focus On The Nigerian Market

The Nigerian LNG Limited Board of Directors has approved that 100 per cent of its Liquefied Petroleum Gas, LPG (butane and propane), be supplied exclusively to the Nigerian Market.

In a statement issued on Thursday 13th January, 2022, the NLNG announced that 100 per cent of the butane (cooking gas) produced by the company would now be dedicated to the domestic market.

Prior to this, the NLNG had been both a domestic and international supplier of LPG. With the Board’s decision all of the company’s production in LPG will be directed towards Nigeria.

The company declared that a plan had been drafted to allow for the sustainable supply of propane for cooking gas, agro-allied, autogas, power as well as the Nigerian petrochemical sectors. The aim, they said, is to increase gas utilization in Nigeria.

With the company supplying approximately 400,000 metric tonnes in 2021, the NLNG affirmed that it is highest single supplier of Liquefied Petroleum Gas to the Nigerian market.

Dr. Philip Mshelbila, the Chief Executive Officer and Managing Director of Nigerian LNG Limited, stated that the company is committed to the LPG domestic market growth, and this announcement was an indication of that. He also established that the goal was to increase the utilization all around the world.

“Committing 100 per cent 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 2022.

“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 production into the domestic market.” He said.

He further explained that even that was not enough, which is why the company has now decided to commit all of its production to supplying the Nigerian market.

Dr. Philip Mshelbila stated that of all the fossil fuels, gas is the cleanest, it is therefore a vital energy source especially during the energy transition period.

He established that other countries have begun revolutionizing their energy industries to effectively reduce the rate of carbon emissions. Nigeria has an abundance of gas resources; we should not be left out.

“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.” Dr. Mshelbila said.

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