By Chioma Iruke
Nigeria Liquefied Natural Gas (NLNG) Limited has opted for the reduction of the exportation of Liquefied Petroleum Gas (LPG), better known as cooking gas, to enable it push more volume into the domestic market as the country grapples with gas shortage.
NLNG CEO, Philip Mshelbila told participants in an industry Conference organised by the National Association of Energy Correspondents (NAEC), in Lagos that the action became necessary to curb the crisis.
He said, “As part of the measures to support the federal government’s efforts to deepen domestic gas supply and economic growth, Nigeria LNG is reducing LPG exports and increasing supplies to domestic market.”
NLNG is now increasing supply to domestic market to 450,000 metric tons mt per annum, Mshebilia said.
It was supplying 250,000 mt/year to the domestic market and exporting the balance of its output to Western markets.
NLNG, a venture involving the state-owned NNPC, Shell, Eni and Total Energies, produces around 7 million mt/year of LPG (propane and butane) from the six trains.
To meet the rise in the supply volume, NLNG said, it had increased the number of off takers to 43 from the initial six contracted in 2007.
Nigeria’s domestic LPG demand is projected to grow to 3 million mt/year by 2026, from the current 1 million mt/year, according to government estimates.
