Fulfillment of NLNG’s promise, critical to the growth of Nigeria’s Cooking Gas (LPG) industry

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• Author: Muyiwa Ige(LPG Stakeholder and Consultant)

The auspicious news of the decision of Nigeria Liquefied Natural Gas (NLNG) company to dedicate 100% of its cooking gas (LPG) production to the Nigerian market has naturally triggered a flux of jubilation amongst investors, marketers and consumers of cooking gas in the country.

With an estimated total production of 500,000-600,000 MT per annum, NLNG is set to meet approximately 1/3 of Nigeria’s annual consumption which oscillates between 1.2M - 1.7M metric tons, when the laudable plan is implemented.

It is instructive to highlight that it was NLNG’s momentous intervention in 2007 that rescued the LPG industry in Nigeria from its pitiable comatose state.

The world-class Gas company has since waxed stronger in spear-heading the sustained growth in the industry by upgrading LPG receiving terminals in Apapa, Lagos, increasing LPG supply to the domestic market, chartering and acquiring LPG vessels for the seamless delivery of the product to coastal depots and playing a significant role in the establishment of a strategic LPG depot in Rivers State; amongst other notable schemes.

NLNG’s decision to commit all its LPG production to the Nigerian market will undoubtedly reduce the volume of imports of the product, making cooking gas more readily available to consumers and lowering its retail price.

As the company increases its production capacity when the Train 7 project is commissioned and feed-gas supply improves to the plant, more volumes are expected to flow into the domestic market; fostering a win-win situation for the consumers of the product and the LPG industry in the country as a whole.

As a stellar company with an impeccable track record of meeting and exceeding expectations, the good people of Nigeria can be rest assured NLNG will fulfill its promise to the letter as soon as possible.