Only 40% of Nigeria's Liquefied Petroleum Gas (LPG) demand was met by Nigeria Liquefied Natural Gas (NLNG) Limited in 2022. This is according to a press release obtained by LPG in Nigeria from the company's website. NLNG had planned to supply 100% LPG, also known as cooking gas, according to the statement. However, it was only able to provide 40%, or 400,000 tons of LPG. Marketers then imported the remaining 60%.
What is the significance of this: Nigeria is pushing for the majority of its people to use LPG as their primary source of cooking in order to meet clean cooking targets set by the global energy transition. The federal government launched the National Gas Expansion Programme (NGEP) in 2020, with the goal of increasing the use of LNG for cooking, compressed natural gas for automobile fuels, and LPG for small industrial complexes.
When it occurred: NLNG pledged in September 2021 to enter the Nigerian domestic LNG supply space in July 2022, to help bridge the country's perennial gas to power and gas to industry supply challenges. During an annual general meeting of LPG marketers in September, Dr. Philip Mshelbila, the managing director of NLNG, stated in 2022:
When we made that commitment last year, the intention was that every molecule of butane and propane that we produce in our facility will come into the domestic market, and since then, we have made every effort to keep to that since January 2022. We have been successful in achieving a supply of 100% of our butane production.
We have not been able to reach 100% with propane, not because we don’t want to but because the market capacity to absorb the propane is just not there. We intend that all the butane and all the propane we produce goes into the domestic market whether propane is used to blend with butane as cooking gas, used as Autogas, or used in the industry to generate power.
Thus, the National Bureau of Statistics (NBS) 2022 Nigeria Multidimensional Poverty Index revealed that vulnerable households in states such as Abia, Bayelsa, Benue, Borno, Ekiti, Enugu, and Kogi are completely deprived of cooking gas. This invariably means that the cooking methods employed here include charcoal, firewood, and dung. Due to affordability issues, many households that had previously used LPG in 2022 had reverted to using firewood and other dirty fuels for cooking.
The body should maintain a steady growth and supply contribution to the domestic market, consistent with its vision of ‘helping to build a better Nigeria.
Invest in supply logistics, infrastructure and security to ensure product supply. It has made financial contributions towards refurbishing LPG receiving terminals in Lagos.
Affordability consideration for the public, especially low-income household within the country.
Consistent increase in reserved LPG volumes for the domestic market.