Nigeria LPG industry consumption and performance – August 2021
According to PPPRA, the LPG industry lifted a total volume of 96,526MT in the month of August 2021; a 13% increase Year-on-Year and a massive 18% decrease increase from July 2021 volumes. LPG – Butane, also known as cooking gas was the area where volumes reduction occurred – 85,262.80MT was supplied against 107,224.58MT in the previous month. Volumes reported include LPG & Propane from Import and local sources – NPDC Oredo, Kwale Hydro Carbon Ltd (KHL), PNG – Umutu, and Greenville. ( source PPPRA). Volumes also included PNG – Umutu, and Greenville – Rumuji figures, but didn’t capture their respective propane volumes. See how the players performed below.
11,262.040MT of Propane was supplied, with Kwale Hydrocarbon Ltd in Kwale contributing over 86% of the propane volumes.
For the Butane volumes, 55% of the volumes came from Import while the balance 45% came from local with NLNG taking 57% ( lower than 71% in the previous month) of the local volumes.
The chart below shows the volumes of LPG lifted from different sources by months
LPG sources in Nigeria.
LPG sourcing declined for cooking gas ( LPG -butane ) but LPG Import was sustained with a marginal increase in volumes.
At 21878.499 MT, NLNG was responsible for about 26% of the LPG ( Butane-mix) supply volumes – a 46% reduction in July figures where it supplied 40198 MT. Other local sources came from Greenville, PNG, KHL, and NPDC Oredo.
For the Butane volumes, 55% of the volumes came from Import despite the high associated costs with imported LPG ( 7.5% VAT and unfavorable FX rates) while the balance 45% ( from 54% in July) came from local with NLNG taking 57% ( lower than 71% in the previous month) of the local volumes.
Prices of LPG at the depots hit 8 Million per 20 MT before the end of the month, while international prices hit a year-high of 613USD/MT from 595.4 at the end of July.
Market Leaders in the Nigeria LPG market in August 2021.
Nipco Plc topped the LPG performance chart with 20% of the market, although it had some NLNG – offtakers volumes added to its figures by PPPRA. Matrix Plc and Stockgap tied with 15% of the market each. Stockgap also had NLNG- offtakers volumes included in its figures also. Ever Oil – a new face in the LPG market, utilized both Algasco and Dozzy oil storage facilities during the period of the report.
Nigerian LPG Marketers performance – August 2021
Nigeria LPG depots performance in the month of August 2021.
Stockgap Depot was the most optimized in the month of August, with 19% of the LPG in the industry passing through their depot. Matrix and NIPCO followed closely at 15 and 14% respectively.
Market Leaders in the Nigeria Propane market in August 2021.
The dominant player for the month of August remains KHL, supplying over 9,700MT ( 86%) this time to the market. NPDC, Oredo, supplied the remaining 14% of the propane. There were no activities reported from Greenville – Rumuji and PNG – Umutu plants.
We like to appreciate PPPRA’s support of the industry by its continuous improvement in the reporting on LPG and propane volumes.