For many Nigerians, the agony of skyrocketing price of cooking gas keeps hitting hard. The Nigeria LNG Limited (NLNG) has however stated that the reason for the increase is due to the inability of marketers to offtake the 450,000MTPA allocated to the Nigerian market by the company due to various factors.
According to the NLNG, the country’s LPG production is still below capacity due to the lack of refineries, forcing the company to deploy Butane to help to bridge the domestic demand gap.
Out of the 450,000MT allocated to the domestic market by the NLNG, only about 375,000MT was procured by the gas marketers in 2020, according to data released by the firm.
With the completion of its Train 7 project, the NLNG added that it would be able to increase its production capacity by 35 per cent, thereby supporting domestic market needs.
LPG price has continued to soar on the backdrop of the rapid devaluation of the naira, and other economic indices despite the country sitting on a 206 trillion standard cubic feet of gas, as well as the government’s proclamation of domestic consumption.
The NLNG, had in an earlier statement, said it recently increased the volume of its yearly commitment to the market from 350,000 metric tonnes to 450,000 MT, which, according to the company, is about 100 per cent of its butane production.
Marketing Manager, NLNG, Austin Ogbogbo, during an interactive session with journalists on Tuesday, maintained that the NLNG was not responsible for the supply shortfall of LPG, also known as cooking gas and the ballooning price hike across the country.
According to him, the inability of the marketers to offtake the LPG was due to logistics and infrastructure challenges as well as other factors in the industry.
The NLNG had earlier stated that its current maximum Butane production can only meet about 40 per cent of the domestic market demand. According to findings by The Standard Gazette, a 12Kg of LPG, now goes for N7200 as against N4500 just before January. There are also fears that given no pragmatic policy solution by the government to address the issue, gas prices could soar to N10000 for 12kg by Christmas.©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.