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NLNG Calls For Increased Investment In Domestic LPG Supply To Ensure Reliable Market Access.

NLNG calls for Increased Investment in Domestic LPG Supply to ensure Reliable Market Access.
NLNG Calls For Increased Investment In Domestic LPG Supply To Ensure Reliable Market Access.

NLNG, Nigeria's largest Liquified Petroleum Gas (LPG) supplier, recently marked 15 years of domestic LPG supply in partnership with the Nigerian LPG Association (NLPGA) at a conference in Lagos. During the event, NLNG's Managing Director and Chief Executive Officer, Dr. Philip Mshelbila, urged stakeholders in the domestic LPG value chain to invest in the supply of the product to ensure a reliable and steady stream of supply to the market.

Dr. Mshelbila highlighted the need for investment in LPG supply to encourage commitment along the value chain, including vertical integrations. He stated that NLNG was leading the way with its investment in Train 7, which would add about 35% to its current capacity when completed, subject to gas supply and gas quality. He also called on other domestic producers of LPG to invest in the local market rather than exporting their product.

To reduce the switching cost to LPG and encourage adoption, Dr. Mshelbila highlighted the need for government action to discourage LPG export by producers, reduce the cost of funding to support infrastructure expansion, and provide clarity on regulatory guidelines and requirements. He also stressed the importance of aligning government enforcement agencies and disseminating information on safe practices in the handling and use of LPG.

Dr. Mshelbila acknowledged that recent challenges in gas gathering and supply had affected operations due to floods ravaging operational sites of NLNG's feedgas suppliers. However, he assured stakeholders of the company's continued operations and urged the government to address crude oil theft, which had impacted the supply of associated gas to its plant in Bonny.

Over the past 15 years, NLNG has played a critical role in deepening the domestic LPG market, expanding access to cleaner, more reliable, and affordable energy. Its intervention has seen the supply of LPG grow from 60,000MT in 2007 to over 1.3million MT in 2021, with the Nigerian LPG market now considered the fastest-growing globally. This has encouraged massive investments in LPG infrastructure, created over 150,000 jobs, and increased tax revenue for the government.

NLNG has also invested in dedicated LPG carriers and security escort vessels, refurbished the Lagos receiving terminal, and increased throughput capacity at the Port-Harcourt Stockgap receiving terminal. Dr. Mshelbila congratulated the NLPGA for supporting and sustaining the value chain for 15 years.

Source:- ThisDay News

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Oluwabukola Jimoh

Oluwabukola Jimoh

Oluwabukola Jimoh is a dynamic academic writer and captivating energy blogger. She is able to delve into intricate subjects with an insatiable thirst for knowledge, crafting thought-provoking essays that engage and enlighten her readers.  

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