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NLNG to Cut Cooking Gas Exports to increase supply for Domestic use



By Prince Owong

Following the increasing cost of cooking gas in the country, the Nigeria LNG Limited has said it would reduced its exports of Liquefied Petroleum Gas, also known as cooking gas, in a bid to meet the growing demand in the domestic market.

This assertion was made by Managing Director and Chief Executive Officer, NLNG, Dr. Philip Mshelbila, in Lagos while highlighting the company’s contribution to domestic LPG supply in the country.

Mshelbila, who was represented by the Manager, Corporate Communications and Public Affairs, Dr Sophia Horsfall, at a conference organised by energy correspondents on Tuesday, noted that in response to calls for NLNG to supply LPG domestically, the company intervened in 2007 to ease the challenges around the availability of LPG.

He said the NLNG had since then consistently made the product available in the country.

He said, “The company has increased its committed volume to the market by consistently reducing its export LPG volumes in satisfaction of domestic demand, increasing domestic provision from 50,000MT in 2007 to 450,000MT from 2021.

“NLNG provides a dedicated vessel for this purpose, LPG Vessel, Alfred Temile. NLNG has taken steps to diversify the supply base of the product by expanding its delivery point from the Lagos Terminals to include a Port Harcourt Terminal to ensure products are not concentrated in one region by infusing flexibility in supply base.”

Mshelbila said the benefits of gas to the country would increase on the back of the Train 7 project, which would expand NLNG’s capacity by 35 per cent from 22 million metric tonnes per annum to 30MTPA.

He said the Train 7 project would add immense value to the country by stimulating inflow of about $10bn foreign direct investment to Nigeria as part of the project scope.

He said it would create more than12,000 direct jobs and additional 40,000 indirect construction jobs, adding, “This will be a massive boost to Federal Government’s commitment to create jobs and move the poverty index positively.”

He said the project would further the development of Nigerian local capacity and businesses through the 100 per cent in-country execution of construction works, fabrications and major procurements.

Mshelbila said it would ultimately increase the company’s volume supply to the global market and keep the country on the top suppliers’ chart as world LNG demand grows.

He said, “This will mean more revenue, more dividends, and more taxes to the Federal Government of Nigeria.

“I believe that Train 7 will be an inspiration and catalyst for Trains 8, 9, 10 and even to Train 15 in line with the recent declaration of ‘Decade of Gas’ by Mr President.”

He noted that the company announced in June 2021 the signing of sales and purchase agreements with three Nigerian companies as counterparts for the domestic supply of LNG.

This is a first for the company. Total volume for these agreements is 1.1 million tonnes per annum. This is enough energy to power over three million homes. Delivery infrastructure are to be provided by the domestic counterparts,” he added