Stakeholders Seeks Implementation of Gas Flare-out Program to Close Domestic Supply Gaps

Oluchi Chibuzor

With Nigeria ranked as one of the fastest growing Liquified Petroleum Gas (LPG) markets in the world, to meet its current domestic demand, the need to implement the National Gas Flare-out programme to close the country’s domestic supply of LPG has been re-emphasised.

This is as domestic consumption reached 1.3 metric tonnes per annum in 2021 in the face of increasing price of the commodity.

Speaking at the ongoing Nigerian Liquified Petroleum Gas Association (NLPGA), former Special Assistant to the President on Petroleum matters, Ja’afaru Paki, said that high demand outstripping supply has created sharp increases in the price of LPG. 

He pointed out that LPG supply remains inadequate due to nonfunctional refineries, inadequate natural processing plants and difficulties in importation. 

According to him, “The LPG production level is far below the growing market demand. In fact, in my opinion, the LPG market is still untapped. It is estimated that once the market is developed, it is expected to contribute considerably to our economy. The forecast of LPG demand is estimated to substantially increase in the next 15years. There is, therefore, a need to put in place a reliable and efficient production and supply system, financial and fiscal policies that will guarantee the attainment of the expected demand.”

“To mitigate this price surge, the LPG supply chain must be improved by the following: More producers to increase the quantity of LPG to the domestic market; Private entrepreneurs to embark on natural gas processing; Implementation of flare out program (NGFCP); Ensuring petroleum refineries are revamped and functioning and reducing/waiving import duties and levies on LPG assets like equipment, chemicals etc.”

Speaking also at the event, the with the theme, “Looking Back and Looking Forward,” the Managing Director, NLNG, Dr. Philip Mshelbila, said they would continue to ease the challenges around the availability of LPG in Nigeria.

He noted that since 2007 It has consistently made the product available in the domestic market, noting It has accepted buyers of all sizes thus creating economic opportunities for Nigerian companies leading to increased investment, improved local competence, creation of jobs, and increased economic activities within the country.