NLNG’s Domestic LPG Supply Hits 3m Metric Tons in 17 Years as FG Targets 5m MT

Peter Uzoho

The Nigeria Liquefied Natural Gas Limited (NLNG) has revealed that it supplied a total of 3 million metric tons of Liquefied Petroleum Gas (LPG) commonly known as cooling gas into the domestic market between 2007 when it set up the Domestic LPG Scheme (DLPG) and 2024.

Managing Director of NLNG, Dr Philip Mshelbila disclosed in Lagos at the 2024 annual conference of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), with the theme, “Sustainable Energy Growth in Nigeria – LPG and the Future.”

Represented by the company’s Manager, Marketing and Business Development, Mr. Ahmed Joda, he said the liquefaction company had been committed to ensuring that LPG serves the need of the Nigerian consumers.

He added that the operator of the six-trained Bonny Island-based plant had been fully committed to the domestic market in achieving its supply goal from over 50,000MT in 2007 to about 450,000MT in 2024.

Mshelbila confirmed that the local LPG market has recorded significant growth in consumption from that inception period in 2007 to around 1.5 million MT annually, currently.

He stated, “NLNG is fully committed to ensuring that LPG serves the need of the Nigerian consumers. It is to ensure this that the company set up the DLPG scheme in 2007 aimed at improving the quality of life of the average Nigerian.

 “Since then, NLNG has been fully committed to the domestic market in achieving our supply goal from just over 50,000 metric tons in that first year to just a bit under 450,000 metric tons in 2023.

“And we are also pleased to see how the market has grown from that inception to somewhere around 1.5 million metric tons now. Between 2007 and 2023, NLNG has supplied cumulatively over 3 million tons of LPG into the domestic market, spiralling a steady rise in annual domestic consumption.”

However, despite the successes witnessed in the local LPG sector, Mshelbila noted some challenges impeding achieving the kind of growth needed including supply liability, infrastructure deficit, and pricing issues.

He said NLNG had generally demonstrated its commitment to working with industry players and all stakeholders to address these challenges.

Meanwhile, the federal government has restated its commitment to ramping up Nigeria’s LPG consumption to 5 million MT by 2030 though formulation and implementation of supportive policies for the sector

Minister of State for Petroleum (Gas), Ekperikpe Ekpo stated this at the conference.

Represented by his Senior Technical Adviser, Abel Nsa, the minister specifically reiterated the government’s commitment to driving investment, infrastructure expansion, and policy support to ensure the affordability, stability, and broad adoption of cooking gas as part of Nigeria’s energy transition.

He emphasised that expanding LPG usage could significantly reduce the country’s reliance on biomass for cooking, improve public health, particularly for rural communities, and contribute to economic growth.

According to him, “Government’s target is to increase LPG consumption to 5 million metric tonnes per annum by 2030, a goal that can be achieved through infrastructure development, market stability, and policies that incentivize investment in the LPG value chain. The demand for LPG is growing, and it offers immediate and long-term benefits for Nigeria’s energy transition and security.”

He pointed out that increasing LPG usage would alleviate pressure on other energy resources and shield the country from global market volatility.

He also revealed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had been directed to create a pricing framework that reflects local production, to ensure market stability and affordability.

Meanwhile, Techno Gas Limited, a subsidiary of Techno Oil Limited has confirmed that it had received first LPG supply from NLNG at its 5000MT storage facility in Kirikiri, Lagos, after four years of unveiling the facility.

The company disclosed this at the conference but was silent on the volume supplied to it by NLNG.