Nigeria LPG industry performance – January 2021
The year started with a deep in LPG volumes lifted Nationwide according to PPPRA numbers, for the month of January 2021 at 69,747 MT – a 23% dip from January 2020 figures.
Figures reported include volumes from the Greenville Natural Gas plant, for the first time. But it didn’t include volumes from Kwale Hydrocarbon Limited at Kwale, Delta state, and the new NPDC Gas processing facility at Oredo, Edo state.
LPG sources in Nigeria.
The dip in LPG volumes was caused by a dip in NLNG performance who delivered two cargoes throughout the month. The reason for the unusual performance isn’t confirmed by our sources, although NLNG has since commenced normal operations in the month of February.
LPG sourcing was dominated yet again by import – taking 58% of the market with Local sources accounting for just 42%. The dominance of imported LPG jerked-up depot prices to N6 Million Naira per a 20MT truck – the first time since 2014 – 2015 in Nigeria, as prices of Butane and Propane remained above 400 USD in the international market. Local supply was mainly by NLNG Bonny which was responsible for 32% of the supplies while Mobil BRT Bonny supplied 10%. An insignificant portion was supplied by Greenville plant, Rumuji.
Market Leaders in the Nigeria LPG market.
There was a change in baton for the month of January 2021, as Algasco led the pack with 23% of the market share – the first in many months.NIPCO the usual leader took just 11% of the market. Matrix Energy and Prudent Energy both in Warri, came 2nd and 3rd with 18% and 16% respectively.
LPG marketers performance – Jan 2021
How the LPG Depot fared in January 2021
Surprisingly, there was no use of the NPSC Apapa depot for the month of January 2021 as Algasco maintained the top rank at 23% of the market share.
At the just concluded Nigeria Gas Association conference 2021, the PPPRA boss, Mr. Agbaje, representing Dr. M. Ibrahim of the Nigeria Gas Expansion Program , stated that the Federal government’s target for the year 2021 is 1.5 Million Metric Tons.
We look forward to a very vibrant 2021 as February figures is sure to produce a bounce-back from the poor January figures.