By Ikenna Omeje
The Nigeria Liquefied Petroleum Gas (NLNG) has reiterated its commitment to 100 percent Liquefied Petroleum Gas (LPG) delivery to the Nigerian market.
The Deputy Managing Director of the NLNG, Olalekan Ogunleye stated this recently in Lagos, while speaking on “15 Years of Domestic LPG Supply Intervention” at the 2nd West Africa LPG Expo and Nigeria Liquefied Petroleum Gas Association (NLPGA) Summit 2022, which held on 23rd – 24th June, 2022.
“We reiterate our commitment to the domestic LPG market and our expansion drive to further improve LPG supply through the startup of Train 7, which will increase our liquefaction capacity by about 35 percent from 22MTPA to 30MTPA,” Ogunleye said.
The Board of Directors of the NLNG had in January approved the supply of 100 percent of the company’s LPG production (propane & butane) to the Nigerian market. Consequently, NLNG will prioritize the domestic market for 100 percent of its Butane production, otherwise known as cooking gas.
The milestone came just three months after the Company supplied its first propane cargo into the domestic market and has developed a scheme to sustainably supply propane for usage in cooking gas blending as well as in agro-allied, autogas, power and petrochemical sectors of the Nigerian economy to further deepen gas utilisation in the country.
These initiatives are designed to increase LPG availability in Nigeria, diversifying its uses and support the Federal Government’s Decade of Gas initiative. NLNG is currently the highest single supplier of LPG into the domestic market, with an estimated 400,000 metric tonnes supplied in 2021.
“As a company, NLNG with the approval and support of its Shareholders (NNPCgroup, Shell, TotalEnergies and eni) has committed 100 percent of its LPG production for delivery into the domestic market,” Ogunleye said.
He disclosed that NLNG currently covers about 40 percent of Domestic LPG (DLPG) demand and continues to be a key player in the deepening strategy.
“NLNG’s drive to increase the supply of LPG in Nigeria is ably supported by its Shareholders, through its Board, who have shown strong commitment to the growth of the DLPG scheme through consistent increase in reserved LPG volumes,” he noted, adding that “NLNG has increased its LPG footprint through the startup of domestic propane delivery, with its first delivery made in September 2021, thereby creating a positive market sentiment and charted a path for future deliveries.”
Despite the successes, Ogunleye said that there is “still more to be done in the journey to deepen the use of LPG in Nigeria and NLNG remains unrelenting. We intend to further our collaboration with regulators and partners including other industry players grow the market.”
According to him, the NLNG in 2017, made financial contributions towards the refurbishment of 3 jetties in Lagos – the Petroleum Wharf Apapa (PWA), New Oil Jetty (NOJ) & Bulk Oil Platform (BOP) jetties. This, he said, has been instrumental in improving the quantum of deliveries into Lagos.
