By Abdulfatah Babatunde
Nigeria LNG Limited (NLNG) has dismissed speculative reports of domestic price surge of cooking gas known as Liquefied Petroleum Gas (LPG).
Andy Odeh, General Manager, External Relations and Sustainable Development at NLNG dismissed the speculation in a statement emailed to TheNewsZenith on Wednesday.
“The speculation is indicative of a fundamental misunderstanding of Nigeria’s intricate market dynamics,” Odeh stated.
A section of the media had reported that a price hike by the NLNG is responsible for the looming surge in the price of cooking gas, known as Domestic Liquefied Petroleum Gas (LPG).
“NLNG has been making defining contributions to the domestic LPG market.
“This is spurring the steady growth of the nation’s DLPG market volume from less than 50,000 metric tonnes of imported LPG in 2007 to over 1.3 million metric tons of both domestic and imported LPG today.
“NLNG currently delivers over 450,000 metric tonnes per annum of Butane, the main product in cooking gas.
“We have also embarked on domestic propane supply to further grow the market.”
Odeh stated that NLNG was committed its entire Butane and Propane production to the domestic market from 2023.
Despite feed gas challenges, he said the company has continued to supply LPG to the domestic market.
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“NLNG supply is accounting for approximately 40 per cent of the total market volume
“Since the beginning of the year, NLNG has delivered over 380,000 metric tonnes of LPG using the Company’s dedicated LPG vessel.
He added that the company remained committed to delivering domestic LPG to locations as close to the market as possible.
“We are diversifying delivery points starting with Lagos in 2023. NLNG is also fostering competition among terminal owners.
This will ultimately reduce the cost of consumer supply chain.
According to him, efforts are ongoing to reach terminals in Warri and Calabar.
We will achieve this as soon as the challenges limiting safe delivery to these other locations are cleared.
“The domestic LPG market, like any other, is subject to dynamic market forces and various external factors.
“Such factors as changes in exchange rates, escalating price benchmarks mirroring crude oil prices and the Panama Canal drought-induced vessel scarcity impacting transport costs.
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