Why LPG Market Is Still Under-Developed- NLNG

Yemisi Izuora
The Nigerian Liquefied Natural Gas (NLNG) has said that dearth of critical infrastructure remains a major challenge to market development of Liquefied Petroleum Gas (LPG) also know as cooking gas.

The company said though it commenced supply of LPG to the domestic market in 2007 when refineries became challenged and supply grossly inadequate, lack of basic infrastructure has caused the product either to be expensive or in short supply.

Kudo eresia-Eke general manager external relations of the NLNG, while speaking at an interactive session with energy journalists in Lagos, said the company’s intervention has significantly contributed to the stimulation and development of the domestic LPG market.

Though the action effectively brought down the price of cooking gas from over N7,000 in 2007 to N3,500 per 12.5kg cylinder, Eresia-Eke observed that if adequate infrastructure is put in place the price of the product would crash and become more affordable.

NLNG has consistently assured of its commitment to delivering of 250,000 tonnes of LPG into the Nigerian market annually and had signed Sales and Purchase Agreements (SPAs) with 15 off-takers for the lifting of LPG for the market.

He said however, that the process of moving the product to the facility in Lagos through vessel to enable off-takers fill into cylinders and transport back to users many of who are in the Niger Delta is creating additional cost to the product.

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