Nigeria turns to imports to close 165,000MT cooking gas deficit

…to end LPG exports by Chevron

Nigeria is planning to ramp up importation to close its domestic supply deficit of Liquefied Petroleum Gas (LPG), widely known as cooking gas. This is despite holding Africa’s largest proven gas reserves.

Rabiu Umar, authority chief executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this at the stakeholders meeting on rising prices of LPG, held in Abuja on monday.

According to him, 165,000 Metric ton (MT) has been projected as supply for third quater 2026.

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Umar explained that challenges including, inadequate LPG infrastructure for distribution; domestic supply gap created by incomplete domestication of local production; charging of non-cost reflective prices by LPG wholesalers and retailers as well as global supply disruptions and price volatilities, due to US/Isreal-Iran war in the middle east has impacted the pricing and supply of LPG in Nigeria.

The authority chief executive said that the agency will ramp up issuance of import permits and follow up issued permits on performance, stressing that import represents the only immediate option for filling the gap created in supply, aside of the prospect of MT supply from Anoh.

NMDPRA also plans to inject LPG export volume into the domestic market through enforcement of ban on exportation of LPG products.

There are also plans to end Chevron’s exportation of LPG and secure volume into the domestic market, as Umar emphasised that local blending capacity has been enhanced to manage chevron’s volume.

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He explained that the immediate and medium term measures to boost availability of LPG in Nigeria include: “End Chevron Export and secure volume into the domestic market. Local blending capacity is enhanced over the last two years to manage chevron volume,

“Audit of offtakers engaged in the lifting of NLNG, NPPC volumes to ensure more effective product distribution and pricing efficiency. A situation where key downstream players with comprehensive LPG storage and distribution logistics on ground require immediate action.

“Intensify monitoring and enforcement in supply and distribution, engage relevant agencies to facilitate access to foreign exchange for critical LPG imports where
necessary, deploy technology-enabled product tracking systems to curb diversion and improve market integrity.”

NMDPRA’s data showed that the total volume of LPG produced from January to May this year, stood at 29,622 MT, while total volume supplied in the period was 21,668 MT. The total volume of LPG consumed in the period was 24,168 MT.

The authority also highlighted measures to expand LPG storage, terminal and distribution infrastructure nationwide, increase domestic LPG production through accelerated gas processing projects and prioritize domestic LPG supply obligations by gas producers.