NLNG Plans to Crash Price of LPG with Supply of 100% Production

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By Sunday Elom

Nigeria has taken the bold step to boost local consumption of liquefied natural gas (LNG) also known as cooking gas, by ensuring that 100% of Nigeria Liquefied Natural Gas (NLNG) production is emptied into the Nigerian local market alone.

The step is aimed at crashing the current rising    price of cooking gas, which comes with a lot of frustrations to many Nigerians who were persuaded to join the cooking gas users’ queue in Nigeria.

Announcing the government’s decision, the NLNG managing director, Philip Mshelbila, said that “committing 100% of our LPG supply is a major milestone in our journey of domestic gas supply.”

According to Mshelbila, NLNG, which supplied its first butane cargo to the local market in 2007 provided its first propane cargo to the local market three months ago. According to him, by the end of the year 2020, Nigeria’s LPG consumption had passed 1 million tonnes, and in 2021, the company supplied 400,000 tonnes, which was nearly its full production of butane to the domestic market.

He stated that the domestic market represented the largest share of its production in the aforementioned years. “But this was not enough for NLNG, hence this commitment to do all that we possibly can and supply 100% of our LPG production to the domestic market.

“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,” the director said.

Remember that NLNG supplies cooking gas to Lagos and Port Harcourt through a 13,000 tonne LPG vessel – the Alfred Temile. As NLNG proposes 100% supply of its LPG to the local market, it is important to noted that the Nigerian National Petroleum Corporation (NNPC) Limited has a 49% stake in NLNG, Shell Gas has a 25.6% stake, TotalEnergies Gaz & Electricite Holdings has 15%, while Eni International has 10.4%.

In August 2021, the NLNG said what it offered was competitive when compared with other sources, and that Building Train 7 would allow it to provide additional domestic supplies and deepen the LPG market.

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