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NLNG To Sustain 100% Deployment Of LPG Production To Domestic Market

by Chika Izuora
3 years ago
in Business
NLNG
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Nigeria LNG Limited has reiterated its commitment to 100 per cent  of its Liquefied Petroleum Gas (LPG) production to the domestic market to support the growth of LPG utilisation in the country.

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This, it added, is also to reduce the health, safety and environmental risks associated with the use of other domestic fuel sources.

The deputy managing director of Nigeria LNG Limited (NLNG), Mr. Olalekan Ogunleye, said this during his speech at the 2nd West Africa LPG Expo and NLPGA Summit on Thursday.

Ogunleye stated that, NLNG remained committed to collaborating with regulators, partners, and industry players to grow the domestic LPG market and bring cleaner energy to Nigerians.

He added that, through the supply of LPG, NLNG prioritised the supply of clean energy in Nigeria while working collaboratively with the government to grow LPG consumption in Nigeria as part of the national journey to a clean energy future.

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He said LPG domestic consumption in the country has increased by 300 per cent, from about 60,000 metric tonnes in 2007 to over one million metric tonnes in 2020. He stated further that the increase indicated that the domestic market was one fastest-growing LPG markets in the world and that it the viability of LPG as a business and its adoption by the citizenry.

He said, a significant stimulus to the domestic LPG was the declaration by the federal government of the ”Decade of Gas” and the support of regulators and industry stakeholders. He stated that the declaration had created an enabling environment for investment and deliberate actions designed to ensure that Nigeria takes advantage of the global energy transition while monetising the country’s extensive gas reserves.

Speaking on NLNG’s contribution, Mr. Ogunleye said: “since the start of the Domestic LPG Supply Scheme in 2007, NLNG has consistently increased both its reserved volumes for the domestic market and actual LPG volumes supplied. NLNG intends to maintain this steady growth and supply contribution to the domestic market, consistent with its vision of “helping to build a better Nigeria.

“Deliveries continue to be made through NLNG’s chartered LPG Vessel, entirely dedicated to delivering the product to Nigeria to underpin the scheme and ensure a steady supply of products without disruption.

“NLNG continues to invest in supply logistics, infrastructure and security to ensure product supply. It has made financial contributions towards refurbishing LPG receiving terminals in Lagos. By so doing, it has made a significant economic impact on business development and the creation of employment opportunities,” he said.

He pointed out that NLNG’s shareholders, through its board, have shown a strong commitment to the growth of the DLPG scheme through the consistent increase in reserved LPG volumes for the domestic market. He noted that, with the support, NLNG had increased its LPG footprint through the start of domestic propane delivery in September 2021, charting a path for future deliveries.


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Chika Izuora

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