May 30, 2024
Nigeria LP Gas Association (NLPGA) commends NLNG as it sets out to supply 100% of its LPG production to Nigeria’s domestic market
NLPGA rejects PPPRA’s N2.5bn Administrative Levy 'Administration Tax' on cooking gas
– By Godswill Odiong

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By Eyo Nsima

The President and Executive Council of Nigeria LP Gas Association (NLPGA) commends the Board of Directors and management of Nigeria LNG Limited (NLNG) for its recent decision to supply 100% of the company’s LPG production to the Nigerian market.

This is a major milestone coming just three months after the Company supplied its first Propane cargo into the domestic market and has 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 Nigeria.

In a statement obtained by The Daily, President, NLPGA, Nuhu Yakubu, stated: “The NLPGA applauds this announcement as it marks a strong commitment of NLNG to the continued growth of the domestic LPG market, which has over the years had far-reaching positive multiplier effects on the economy. Evidently, this approach will further increase the supply and utilisation of LPG in Nigeria.

“The Association shall continue to work with NLNG as it helps to build a strong economy, through it’s various domestic gas supply initiatives, in support for Nigeria’s quest for accelerated gas based industrialization with the gas resources that it is abundantly endowed with. Undoubtedly, “this cements NLNG’s practical demonstration of sustained commitment to LPG supply into the domestic market, guaranteeing household energy poverty reduction.

“In recent months past, Nigerians have had to pay significantly more to buy cooking gas owing to supply disruptions. This supply intervention move by NLNG is expected to free up more volumes, and have some cushioning effect on the high price of cooking gas, subject however to its realistic production output as determined by other factors.

“The Association remains appreciative of the invaluable efforts of NLNG since its 2007 inception of the Domestic LPG supply program till date, which stands it tall above its peers in the discharge of corporate social responsibility. Clearly, the NLNG’s LPG supply intervention program represents CSR at its best, because it directly addresses ‘stomach infrastructure’ imperatives of the average Nigerian. Affirmatively, no other company has done more to impact on millions of Nigerian households and families than the NLNG, through its various interventions, when it has been most needed.”

He also stated: “Industry records reveal that in 2007, NLNG commenced with 50,000mt/annum LPG allocation for domestic market supply and in 2007, NLNG deployed the mother and daughter vessels ship to ship arrangement at cost to the company, to guarantee volumes delivery to domestic market.

“In 2008/2009, NLNG sourced new medium gas carriers and commences use of MGCs for more efficient LPG delivery to domestic market and in 2008, NLNG increased LPG allocation to the domestic market from 50,000mt to 150,000mt/annum.

“Also, in 2013, NLNG increased LPG allocation to domestic market from 150,000mt to 250,000mt/annum and in 2016/2017, NLNG increased LPG allocation to domestic market from 250,000mt to 350,000mt/annum.

“Furthermore, in 2019/2020, NLNG increased LPG allocation to domestic market from 350,000mt to 450,000mt/annum and in 2022, NLNG increased LPG allocation to domestic market, from 450,000mt/annum to 100% production.

“NLNG financed security and safety repair maintenance works at NOJ and PWA LPG jetties in Apapa, to enable increased supply frequency through multiple berting facilities and incentivised development of LPG coastal depot in Port Harcourt, South-South Nigeria, to reduce the delivery cost of LPG to the region where it is largely produced.

“NLNG has maintained a favourable foreign exchange policy, which allows its LPG offtakers pay for its USD priced LPG cargos in Naira, at CBN official exchange rates, at a time when such generosity is no longer fashionable and also aggregate capacity of coastal storage developed since NLNG’s intervention has increased geometrically from 7000MT in 2007 to almost 100,000MT in 2021, with the attendant thousands of jobs created due to supply stability of LPG across the entire LPG value chain.

“Definitely, indeed when it comes to giving back to the society and its immediate operating community, the NLNG remains the ‘daddy’ of them all and the NLPGA will continue to engage with all stakeholders in the LPG sector and relevant government agencies to making this initiative a success for Nigerian consumers as this will further deepen the process of achieving growth and development for the sector.”

He also added: “The Nigeria LP Gas Association is the umbrella body of all Stakeholders in the LP Gas sector in Nigeria. The primary objective of the Association is to promote the use of LP Gas in Nigeria at an affordable cost.  It also aims at protecting the interests of the LP Gas industry and the entire Nigerian socio-economic environment at large, through public policy advocacy, creation and facilitation of commercial and industrial opportunities, provision of business development services and observance of the highest standard of safety, operational and business ethics.”

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