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Nigeria LNG Maps out 450,000 MT of LPG annually for domestic use

Consumers of the Liquefied Petroleum Gas, LPG, would have more domestic supply, as the Nigeria LNG Limited, has started the supply of 450,000 metric tonnes, MT in 2021, Vanguard news media reported.

A company source, who confirmed the development, said the product would be delivered to designated destinations, including Lagos. Earlier, Managing Director, NLNG Limited, Mr Tony Attah, had promised to increase its allocation of LPG to the domestic market from 350, 000MT to 450, 000MT by 2021, adding that the move aims at supporting the Federal Government’s plan to deepen LPG (cooking gas) penetration in Nigeria.

According to him, the desire of the NLNG to deepen LPG penetration in Nigeria is aimed at creating a healthy life for Nigerians by giving them access to a clean source of energy for cooking. He had said: “In 2007, the total consumption of LPG in Nigeria was about 50, 000MT. Today, it is about one million metric tonnes and NLNG’s contribution is 350, 000MT. We have approached our board to get a mandate to increase NLNG’s contribution to 450, 000MT from next year. That is a very positive contribution from NLNG.”

Nevertheless, the Nigeria Liquefied Petroleum Gas Association, NLPGA, said the sector was threatened by some challenges, including the imposition of an administrative levy, despite the deregulation of the LPG sector by the PPPRA remains the major problem currently staring the sector in the face.

In a directive to its members obtained by Energy Vanguard, NLPGA, stated: “It has come to the attention of the Executive Committee that the PPPRA has continued to circulate directive to levy an administrative fee on LPG despite the product being deregulated. Since the initial pronouncement late last month, the Association published a press release to debunk and robustly rebuff any attempt by PPPRA to implement any charge on LPG as PPPRA has no administrative role in a deregulated market.

“We have also escalated this and other challenges with government regulatory agencies to the Presidency with promises to intervene swiftly. You are by this mail, urged to ignore and do not comply with the proposed directive. “Nigeria’s LPG industry is arguably the fastest growing sector in Africa, a feat attributable to the tireless and concerted efforts of the private sector over the last decade. It is noteworthy, that in spite of fluctuating foreign exchange rates and a COVID-19 battered economy, the stakeholders have managed to stabilise the general affordability of the product in order not to overwhelm an already pauperised population.”

“This feat of maintaining price stability at a huge cost to operators amidst massive investment in infrastructure has been made possible because of LPG being a fully deregulated product. “Equally exciting are several measures in order to further catalyse sectoral growth through such actions as the waiver on VAT on LPG and LPG equipment; waiver on import duty on the importation of LPG equipment; and, quite recently, the various strategic consultations to deepen gas utilisation by strengthening Autogas (LPG/CNG/LNG), Gas to Power applications and initiatives.

“In fact, the declaration of 2020 as the “Year of Gas” by the Minister of State for Petroleum Resources was an added impetus to the drive to achieve gas expansion. “We will, however, continue to explore all avenues to seek redress, promote ease of doing business, and advocate for the better mutually beneficial business, public health safety, and environment for all.”

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