NALPGAM commends NLNG over plans to increase domestic LPG allocation to 450, 000MT

The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has commended the Nigeria Liquefied Natural Gas (NLNG) Limited for planning to increase its allocation of Liquefied Petroleum Gas (LPG) to the domestic market from 350, 000MT to 450, 000MT by 2021.

The group, however, appealed to the NLNG to further consider increasing the domestic supply of LPG to the level that would reverse the current trend of the Nigeria market depending substantially on imported LPG products.

NALPGAM’s President, Nosakhare Ogieva-Okunbor made the commendation in a statement issued on Wednesday in Lagos.

Tony Attah, the Managing Director of NLNG, had announced recently that the increment was aimed at supporting the various Federal Government’s plan to deepen LPG (cooking gas) penetration in Nigeria.

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Ogieva-Okunbor said with the involvement of NLNG in LPG industry in Nigeria, consumption of about 50,000MT in 2007 grew to about 900,000MT in 2019.

He said, “As of today, with the massive investment inflow, strong advocacy and awareness campaigns on the part of NALPGAM, federal government agencies, industry stakeholders as well as government’s incentives the consumption and usage have grown exponentially.

“By the end of the year 2020, it is estimated that domestic demand for LPG would have exceeded One million Metric Tonnes.

“While the announcement of increased domestic allocation by NLNG is commendable, multinational and other indigenous companies involved in Gas production should be mandated to sell to the domestic market which fortunately has the capacity to take up available production. ”

According to him, this will improve LPG availability which will ultimately lead to price stability.

Ogieva-Okunbor noted that Nigeria produces about 4million Metric Tonnes of LPG per annum which was largely for exports.

He said, “Currently, the NLNG supplies about 40 per cent of LPG in the domestic market while the remaining 60 per cent is sourced by individual investors via imports.

“With the emergence of many private storage terminals in the country, sourcing of products has been wholly and solely dependent on imported LPG.

“The implication of this is that much pressure is put on the country’s foreign exchange to import a product that is abundantly available in the country.

“We, therefore, want to specially appeal NLNG to further consider increasing the domestic supply of LPG to the level that will reverse the current trend of the Nigeria market depending substantially on imported LPG products.”