The Nigeria Liquefied Natural Gas (NLNG) Limited has countered claims that its operations caused the recent climb in Liquefied Petroleum Gas (LPG) prices.
NLNG, in a statement released yesterday, refuted the speculation linking it to the increasing domestic LPG costs. The company stressed a widespread misunderstanding of the factors influencing Nigeria’s market.
“Through our efforts, Nigeria’s domestic LPG market has grown significantly, from barely 50,000 metric tonnes in 2007 to over 1.3 million metric tonnes today, with both local and imported LPG,” the statement highlighted. NLNG has now committed all its Butane and Propane production for domestic needs from 2023 onwards. Despite facing feed gas challenges, NLNG has managed to supply almost half of the local market’s demand.
In the current year, NLNG’s dedicated vessels have delivered more than 380,000 metric tonnes of LPG, demonstrating its dedication to meeting domestic needs. The company is also looking to extend its reach to include terminals in Lagos and potentially Warri and Calabar, a move that could spark competition among terminal operators and lead to lower costs for consumers.
Experts in the market acknowledge several factors that sway energy prices, including exchange rate fluctuations, international oil price benchmarks, and transport difficulties that affect imported LPG. These factors have likely played a part in the recent price hikes.
NLNG stands firm in its commitment to ensuring stable domestic LPG supply at market-reflective prices. The company is actively collaborating with industry stakeholders to maintain a steady supply of affordably priced LPG, adhering to its mission of supporting the Nigerian market with transparency and integrity.
