The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has advised the Nigeria Liquefied Natural Gas (NLNG) Limited to increase domestic gas supply to reduce import dependence.
It praised NLNG for planning to increase its allocation of Liquefied Petroleum Gas (LPG) to the domestic market from 350, 000MT to 450, 000MT by 2021.
Its President, Nosakhare Ogieva-Okunbor, in a statement, noted that Nigeria produces about 4million Metric Tonnes of LPG per annum, which is largely for exports.
He said: “Currently, the NLNG supplies about 40 per cent of LPG in the domestic market while the remaining 60 per cent is sourced by individual investors via imports.
“With the emergence of many private storage terminals in the country, sourcing of products have been wholly and solely dependent on imported LPG.
“The implication of this is that much pressure is put on the country’s foreign exchange to import a product that is abundantly available in the country.
“We, therefore, want to especially appeal NLNG to further consider increasing the domestic supply of LPG to the level that will reverse the current trend of Nigeria market depending substantially on imported LPG product.”
NLNG Managing Director, Mr Tony Attah, had announced that the increment was aimed at supporting the various Federal Government’s plan to deepen LPG penetration in the country.
Ogieva-Okunbor said with the involvement of NLNG in LPG industry, consumption of about 50,000MT in 2007 grew to about 900,000MT in 2019.
He said: “As of today, with the massive investment inflow, strong advocacy and awareness campaigns on the part of NALPGAM, Federal Government agencies, industry stakeholders as well as government’s incentives the consumption and usage have grown exponentially.
“By the end of 2020, it is estimated that domestic demand for LPG would have exceeded One million Metric Tonnes.
“While the announcement of increased domestic allocation by NLNG is commendable, multinational and other indigenous companies involved in Gas production should be mandated to sell to the domestic market which fortunately has the capacity to take up available production. “
According to him, this will improve LPG availability which will ultimately lead to price stability.