The Nigerian LNG (NLNG) Ltd. has reiterated its commitment to ensuring 100% Liquefied Petroleum Gas (LPG) production to the domestic market to support the growth of gas utilisation in the country.
The NLNG said it would also help to reduce the health, safety and environmental risks associated with the use of other domestic fuel sources.
The Deputy Managing Director, NLNG, Olalekan Ogunleye, disclosed this yesterday at the Second West Africa LPG Expo and Nigeria Liquefied Petroleum Gas Association (NLPGA) Summit, in Lagos.
The summit was themed: “Energising the Future: LPG as a sustainable fuel in African Economies.”
Ogunleye said NLNG remained committed to collaborating with regulators, partners, and industry players to grow the domestic LPG (cooking gas) market and bringing cleaner energy to Nigerians.
He added that through the supply of LPG, NLNG prioritised the supply of clean energy while collaborating with the government to grow LPG consumption in Nigeria as part of the national journey to a clean energy future.
Ogunleye said LPG domestic consumption in the country had increased by 300% from about 60,000 in 2007 to over one million metric tonnes in 2020, which he said indicated that the domestic market was one of the fastest-growing LPG markets in the world.
He added that a significant stimulus to the domestic LPG was the declaration by the Federal Government of the “Decade of Gas” and the support of regulators and industry stakeholders.
He said this declaration had created an enabling environment for investment and deliberate actions designed to ensure that Nigeria takes advantage of the global energy transition while monetising the country’s vast gas reserves.
Ogunleye said: “Since the start of the Domestic LPG Supply Scheme in 2007, NLNG has consistently increased both its reserved volumes for the domestic market and actual LPG volumes supplied.
“NLNG intends to maintain this steady growth and supply contribution to the domestic market, consistent with its vision of helping to build a better Nigeria.
“Deliveries continue to be made through NLNG’s chartered LPG Vessel, entirely dedicated to delivering the product to Nigeria to underpin the scheme and ensure a steady supply of products without disruption.”
NLNG said it would also help to reduce the health, safety and environmental risks associated with the use of other domestic fuel sources.
According to him, NLNG will continue to invest in supply logistics, infrastructure and security to ensure product supply, and has made financial contributions towards refurbishing LPG receiving terminals in Lagos.
Ogunleye said: “By so doing, it has made a significant economic impact on business development and the creation of employment opportunities.
“NLNG’s shareholders, through its board, have shown a strong commitment to the growth of the DLPG scheme through the consistent increase in reserved LPG volumes for the domestic market.”
He said with this, NLNG had increased its LPG footprint through the start of domestic propane delivery in September 2021, charting a path for future deliveries.
Earlier, President, NLPGA, Nuhu Yakubu, commended the Federal Government’s efforts on safe handling of LPG and deepening its domestic utilisation.
Yakubu also lauded the NLNG for the DLPG scheme, which had made a significant impact on domestic supply, saying: “It has catalysed reduction in household energy poverty with reduction in the use of dirty fuel sources for cooking.
“It has also stimulated growth in the industry, through its multiplier effect, positive impact on forward and backward linkage businesses with massive infrastructure build out that is currently being experienced across the value chain today.”(NAN)
