Nigeria LNG (NLNG) has demonstrated its commitment to continue to support the growth of the Liquefied Petroleum Gas (LPG) industry by dedicating 350,000 metric tonnes per annum of cooking gas, otherwise known as Domestic LPG (DLPG) to the country, to ensure reliable and affordable supply.

NLNG Manager Sales Administration, Mr. Ahmed Joda said this during a presentation titled “Unlocking Domestic LPG Investment Opportunities” at the 2017 Nigeria Liquefied Petroleum Gas Association (NLNGA) Conference, which held at Federal Palace Hotel in Lagos on Thursday.

Joda stated further that “NLNG also advocates and encourages infrastructure development to ensure debottlenecking of existing receiving & storage facilities and expansion of the facilities with the construction of new ones.”

According to him, DLPG consumption was expected to grow to 1.7million tonnes per annum by 2020, if extensive intervention strategies are adopted.

Developments in the market already support this projection.

He stated that while NLNG is focusing on optimising coastal delivery to Apapa, revamp the Nigerian Petroleum Marketing Companyjetties, optimising shipping operations to reduce product shipping costs, and encouraging storage capacity development, there was need for continuous engagement of direct stakeholders (Off-takers) on safety and active participation in an industry-wide LPG conversion scheme.

“The LPG business in Nigeria is one which has opportunities that can be harnessed in the value chain to bridge the gap,” Joda said.

Currently, Lagos is the primary LPG distribution point in the country. The challenge is that the Lagos port is highly congested and unable to efficiently serve as the major distribution point for the entire country,” he said.

Opening up other distribution points in parts of the country as well as developing transportation modes to other discharge points will lead to advancement of the DLPG market.

Joda considered the railway as a viable option for more efficient and effective coverage of the entire country. He stated that Port Harcourt offered such opportunity for expansion of the LPG distribution market to the East and North via the existing railway network.

In addition, he suggested that trucking could provide limited transportation support to the business.

The NLNG Manager further said that “NLNG will continue to play a leading role in policy advocacy on LPG usage/adoption, safe operations and good practice.”

Already, NLNG has committed to DLPG supply of 350 kilo-tonnes per annum, through a dedicated vessel, while advocating for infrastructure development, and collaboration with Government and other stakeholders.