Business

NLNG halts cooking gas exports, distributes more to domestic market

Domestic Cooking Gas

Domestic gas supplies is about to get better in Nigeria.

The Nigeria Liquefied Natural Gas (NLNG) Limited announced on Thursday that its board of directors had approved the supply of 100 per cent of the Liquefied Petroleum Gas (butane and propane) produced by the company to the Nigerian market.

The NLNG said in a statement that it would prioritize the domestic market for 100 per cent of its butane (cooking gas) production.

It noted that it supplied its first propane cargo into the domestic market three months ago.

The company said it had 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.

It said the initiatives were designed to increase LPG availability in Nigeria, diversify its uses and support the Federal Government’s Decade of Gas initiative.

According to the statement, the NLNG is currently the highest single supplier of LPG into the domestic market, with an estimated 400,000 metric tonnes supplied in 2021.

The Managing Director and Chief Executive Officer, NLNG, Dr Philip Mshelbila, said the announcement marked the company’s strong commitment to the continued growth of the domestic LPG market and its passion to increase utilization of one of the most versatile energy sources in the world.

According to Mshelbila, gas, as the cleanest of the fossil fuels, has become an essential energy source to be reckoned with during this energy transition period.

He said, “Other countries are revolutionizing their energy industry to cut down on carbon emissions drastically. Nigeria should not be left out in this drive, considering its abundant gas resources.

“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.”

NLNG supplies gas globally through ocean going vessels with the sales done via long term contracts. The decision to optimize domestic supplies will really have a positive impact on domestic supplies and pricing.

1 Comment

1 Comment

  1. Kay

    January 14, 2022 at 8:32 pm

    This is a welcome development. We’re however sceptical until this reflects on the price of cooking gas in Nigeria.

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