By Yemi Olakitan
The Nigerian LNG Limited has stated that three main local macroeconomic events and worldwide variables have combined to limit appropriate supply in the domestic market, against the backdrop of the ongoing price increase for cooking gas.
Additionally, the company said that it will maintain the market with roughly 1.3 million metric tonnes.
“The domestic LPG market, like any other, is subject to dynamic market forces and various external factors,” the business said in a statement released Wednesday. Changes in exchange rates, rising benchmark prices that reflect the price of crude oil, and vessel scarcity caused by the Panama Canal drought that affects transportation costs, particularly for imported LPG, are just a few of the factors that have had a significant impact on energy prices recently and may be contributing to the recent price increases in the domestic market.
In the meantime, the average cost of one kilogramme of cooking gas has increased from N696 in June 2023 to N1,200, a 61 percent increase.
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Notwithstanding the limitations, NLNG Limited stated that its 1.3mmt supply is intended to meet the nation’s growing need for the commodity while lowering imports.
The statement read as follows: “NLNG has been contributing to the domestic LPG market, fostering the nation’s DLPG market volume to over 1.3 million metric tonnes of both domestic and imported LPG today from less than 50,000 metric tonnes of import LPG in 2007.”
“NLNG has started supplying domestic propane in order to expand the market. Currently, NLNG distributes approximately 450,000 metric tonnes of butane annually, which is the primary product in cooking gas.
“The Company has pledged to producing all of its butane and propane domestically starting in 2023. In spite of feed gas supply issues, the Company continues to supply LPG to the domestic market, making up about 40% of the overall market volume. NLNG has used its dedicated LPG vessel to deliver more than 380,000 metric tonnes of LPG since the year’s beginning.
“NLNG remains steadfast in its commitment to guaranteeing a consistent supply of its LPG production to the domestic market at market-appropriate rates. To accomplish this goal, the company is working with pertinent industry players, and it will not waver in its commitment to fulfilling its aim.”
