NLNG Halts Cooking Gas Export, Directs All Sales to Local Market

The Nigerian Liquefied Natural Gas (NLNG) Limited has suspended cooking gas export to prioritise the local market by supplying 100 percent of its propane and butane (cooking gas) products to Nigerians.

Before now, “Nigeria LNG Limited supplied LPG (Liquefied Petroleum Gas) both to the Nigerian and international markets. With the decision of the Board of Directors, all of the company’s LPG production will be delivered to the domestic market.”

In its statement, the NLNG said it had designed a scheme to sustainably supply LPG (butane and propane) for usage in cooking gas blending as well as in agro-allied, autogas, power and petrochemical sectors of the Nigerian economy to improve gas utilisation in Nigeria.

The initiatives were designed to increase LPG availability in Nigeria, diversify its uses and support the Federal Government’s Decade of Gas initiative, NLNG Managing Director and CEO, Dr Philip Mshelbila said.

Committing 100 per cent of Nigeria’s LPG supply is a major milestone in NLNG’s journey of domestic gas supply, he said, adding “We supplied our first butane cargo into the domestic market in 2007, which helped to develop over the years the LPG industry in Nigeria from less than 50,000 tonnes to over 1 million tonnes market size annually by the end of 2020.

“In 2021, we increased our LPG supply commitment from 350,000 metric tonnes (or 28 million 12.5kg cylinders) to actual delivery of 400,000 metric tonnes (or 32 million 12.5kg cylinders) thereby directing most of our production into the domestic market.

“But this was not enough for NLNG, hence this commitment to do all that we possibly can and supply 100 percent of our LPG production to the domestic market.”

With recent talks of going green, by reducing harmful emissions which cause global warming, Mshelbila noted that gas is the cleanest of the fossil fuels, and an essential energy source the Nigerian market needs to be reckoned with during this energy transition period.

“Other countries are revolutionising 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,” he said.