By Modupe Gbadeyanka
In an effort to crash the price of cooking gas in the country, Nigeria LNG (NLNG) Limited intends to stop exporting Liquefied Petroleum Gas (LPG) to other countries.
In a statement on Thursday, the agency said all its gas would be supplied to the local market, a development it hopes will boost supply and consequently ease prices.
To make this a reality, the board of NLNG has endorsed this and in the coming weeks or months, the impact of this action would be felt by Nigerians, who have lamented the high cost of refilling their gas cylinders.
NLNG is currently the highest single supplier of LPG into the domestic market, with an estimated 400,000 metric tonnes supplied in 2021.
“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.
“But this was not enough for NLNG, hence, this commitment to do all that we possibly can and supply 100 per cent of our LPG production to the domestic market,” the CEO of NLNG, Mr Philip Mshelbila, stated.
He noted that the focus on the domestic market marked the company’s strong commitment to its passion to increase the utilisation of one of the most versatile energy sources in 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 one million tonnes market size annually by the end of 2020,” he added.
He described gas as the cleanest of fossil fuels, stressing that it has become an essential energy source to be reckoned with during this energy transition period.
“Other countries are revolutionising their energy industry to cut down on carbon emissions drastically. 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,” he noted.
