Marketers Insist LPG Export Driving Domestic Products Pricing

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By CHIKA IZUORA, Lagos The dust raised by the hike in the prices of domestic Liquefied Petroleum Gas, LPG, also known as cooking gas, is yet to settle as

“The NLNG vessel brings just about 13,000 metric tonnes of LPG to Lagos where private operators have over 30,000 metric tonnes holding facility,” he said.

Presently, in order to achieve its aspiration for the domestic supply, a dedicated 13,000 metric tonne vessel, LPG Alfred Temile, delivers the product to the market through Lagos and Port Harcourt terminals. Essien rejected the argument, saying that 13,000 is on its own inadequate and argued that it is the same marketers whose facilities receive imported products.

He said the company was inclined towards helping to build a strong economy based on the gas resources that Nigeria is abundantly blessed with, and that natural gas could help drive the economy by providing cooking gas for homes, supporting industrialisation, powering mobile cell sites and complex transportation systems, impacting food supply through its usage for fertilizer production and increasing power supply to both homes and industries while reducing the country’s carbon footprint.

The company’s drive towards deepening the domestic LPG market is pivotal to NLNG’s vision of helping to build a better Nigeria. The company is optimistic that the eventual completion of its Train 7 Project will further deepen the domestic LPG market. The managing director of Shell Nigeria Gas, Ed Ubong, also said that while much of the gas from Shell operated Gbaran-Ubie field, which produces about 864 MMcf/d of gas, is for export, the company is building infrastructure to deliver the gas to local industries.

Programme manager, National LPG Expansion Implementation Plan, office of the Vice President, Dayo Adeshina, in a telephone conversation with LEADERSHIP said government was deepening efforts to balance the LPG market and that what NLNG offer so far is based on stakeholder agreement between November and December last year to dedicate its entire LPG production to local consumption.

Minister of state for petroleum, Timipre Sylva, explained that the move was part of the National Gas Policy of the government. According to him, the government also aims to diversify supply sources with 110,160MTPA from Nigerian Petroleum Development Company’s Oredo facility.

 

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