Nigeria LNG to supply 350ktpa of domestic LPG

To ensure a reliable and affordable supply nationwide, the Nigeria Liquefied Natural Gas (NLNG) Limited says it is dedicating 350,000 metric tonnes per annum of cooking gas (Domestic LPG (DLPG)) to support the growth of the nation’s LPG industry. The company “advocates and encourages infrastructure development to ensure debottlenecking of existing receiving and storage facilities, and expansion of the facilities with the construction of new ones.” In his presentation entitled, “Unlocking Domestic LPG Investment Opportunities” at the 2017 Nigeria Liquefied Petroleum Gas Association (NLNGA) Conference in Lagos, the Manager, Sales Administration, Mr. Ahmed Joda, said that DLPG consumption would grow to1.7 million tonnes per annum by 2020 if extensive intervention strategies are adopted. Joda disclosed that developments in the market already support this projection, adding that while NLNG is focusing on optimising coastal delivery to Apapa, there was need for continuous engagement of direct stakeholders (off-takers) on safety and active participation in an industry-wide LPG conversion scheme. The company’s efforts at optimizing coastal delivery to Apapa include revamping of NPMC jetties, optimising shipping operations to reduce product shipping costs, and encouraging storage capacity development, according to a statement by the General Manager, External Relations, Dr. Kudo Eresia-Eke. “The LPG business in Nigeria is one which has opportunities that can be harnessed in the value chain to bridge the gap,” he noted. “Currently, Lagos is the primary LPG distribution point in the country. The challenge is that the Lagos port is highly congested and unable to efficiently serve as the major distribution point for the entire country. “Opening up other distribution points in parts of the country, as well as developing transportation modes to other discharge points will lead to advancement of the DLPG market.” A viable option for more efficient and effective coverage of the entire country is railway, Joda said, adding that Port Harcourt offers such opportunity for expansion of LPG distribution market to the East and North via the existing rail network. Noting that trucking could also provide limited transportation support to the business, Joda stated that “NLNG will continue to play a leading role in policy advocacy on LPG usage/adoption, safe operations and good practice.” Having committed to DLPG supply of 350ktpa through a dedicated vessel, the company is advocating infrastructure development, as well as collaboration with government and other stakeholders.