Despite NLNG Constant Deployment LPG, Gas Price Soars To N1,300

Many users  of Liquified Petroleum Gas (LPG) also called cooking gas in Lagos went in search for the commodity as many marketers ran out of supply, despite NLNG confirmation that it supplies 1.5 million metric tons of LPG to the Nigerian domestic market.

As at Friday March 1, the price of the commodity soared to as much as N1,300 per kilogram, LEADERSHIP findings reveal.

This is even as the Nigeria Liquified Natural Gas(NLNG) Limited, has advocated increased consumer awareness, especially, in rural areas, on the use of Liquified Petroleum Gas (LPG) also called cooking gas to drive up utilisation and reduce associated risks from using biomass for cooking.

The company further clarified that it annually provides close to 500,000 metric tons of LPG to meet market demands.

This is in pursuit of its commitment to deliver 100 per cent of its LPG production to the domestic market, a decision made by the company’s board of Directors in 2022.

RELATED

Buhari Proved Public Service Can Be Done With Integrity, Transparency – Osinbajo

57 seconds ago

UBEC Targets 10m Out-of-school Children Before 2028

2 minutes ago

This is coming as the price of the commodity further escalated as most outlets on Friday in Lagos ran out of supply.

This further aggravated the situation leading to long queues at refilling plants with most Nigerian National Petroleum Company, NNPCL, retail outlets were dry.

Some marketers like TotalEnergies where a few outlets sold to customers were selling at N1,300 per 1kg.

Customers were forced to buy limited quantities as they didn’t envisage a sudden arbitrary increase.

In 2023, NLNG supplied 493,000 metric tons of LPG to the domestic market. In the preceding years, NLNG delivered 498,000 metric tons in 2022 and 399,000 in 2021. Currently, NLNG caters for 30 per cent of the total LPG demand in the country which is currently estimated to be about 1.5 million metric tons.

The NLNG maintains a firm commitment to supplying LPG to the domestic market. Additionally, the company remains focused on promoting increased gas utilisation within the country and raising awareness about the use of clean gas for cooking to mitigate health risks associated with firewood usage.

The company said it takes pride in its role in the LPG sector, facilitating the entry of more stakeholders into the LPG value chain and encouraging investments in infrastructure development to bolster sectoral growth. This endeavour has contributed to the creation of additional employment and business opportunities in Nigeria.

At the National Oil Companies Forum on Day Three of the 7th Nigeria International Energy Summit (NIES), the company’s general manager, Finance, Mrs Fatima Adanan, underscored the need for a campaign that aims to transition biomass users to LPG for cooking in the market. She said the goal is to increase LPG usage in Nigeria, thereby altering the current energy mix and achieving deeper penetration of LPG.

She stated that the total market consumption in Nigeria is about 1.5 million metric tons with potential to increase exponentially.

NLNG supplies close to 500,000 metric tons to meet the market’s demand, fulfilling its commitment to supply 100 per cent of its LPG production to the domestic market.

Adanan emphasised that NLNG was doing everything within its power to make the product available and affordable, selling the LPG at a competitive price with payments made in Naira.

She said the company was ready to work with stakeholders to deepen LPG utilisation and called on indigenous companies to participate actively in the distribution network and contribute to a robust value chain.

She stressed that NLNG remains committed to promoting the adoption of cooking gas as a superior and environmentally friendly cooking fuel, aiming to safeguard consumers and the environment from the risks associated with alternative fuels, which aligns with its environmental safety priorities.