• Sun. Nov 27th, 2022

NLNG calls for more investment to ensure reliable supply of LPG

ByJanice K. Merrill

Oct 26, 2022

By Yunus Yusuf

NigeriaLNG Ltd. (NLNG) called on stakeholders in the national liquefied petroleum gas (LPG) value chain to invest in the supply of the product to ensure reliable and steady supply.

The company made the call in a statement issued by its Managing Director, External Relations and Sustainable Development, Mr. Andy Odeh, to mark 15 years of national LPG sourcing in conjunction with the Nigerian LPG Association (NLPGA).

The release quotes NLNG’s chief executive, Dr. Philip Mshelbila, as saying the investment in supply would drive engagement across the value chain, including vertical integrations.

Mshelbila said NLNG would invest more in “Train 7”, which would add about 35% to its current capacity when completed, subject to gas supply and gas quality.

He added that other domestic LPG producers should invest to enable their product to become available on the domestic market, rather than exporting it.

He said the interventions would reduce the cost of switching to LPG, encourage greater adoption, as well as reduce the cost of financing to support infrastructure expansion and growth as a deliberate government action to encourage non-export. of LPG by producers.

Mshelbila said other urgent interventions included clarity of guidelines and regulatory requirements, alignment of government law enforcement agencies and widespread dissemination of information on safe practices in the handling and use of the drug. LPG.

“Gas supply and gathering initiatives have faced major challenges in recent times, and this is due to flooding which has ravaged the operational sites of NLNG’s feed gas suppliers,” he said. declared.

He said there had been a state of emergency requiring declarations of force majeure.

The NLNG helmsman, however, ensured the continuation of operations at the company’s production plant.

“We continue to load and ship LPG domestically.

“Therefore, we reassure Nigerians of our ongoing operations in the immediate term and look forward to an urgent return to normalcy.

“Prior to the flood, we were dealing with the relentless effects of crude oil theft, which directly and severely affected the supply of associated gas to our plant from upstream producers.

“We recognize the progress made to address this issue by the government and its agencies and hope this will soon translate into an improved gas supply to our Bonny plant,” he said.

Mshelbila said the LPG supply was the reason the NLNG board decided to step in, increasing the supply from 50,000 tonnes in 2007 to 150KT at 100%, which is around 40% of the internal market for LPG (DLPG).

“In the 15 years since 2007, NLNG has played a vital role in deepening the DLPG market with a reliable supply of LPG.

“By expanding access to cleaner, more reliable and affordable energy, the number of its buyers has grown from seven at the start to 42 today.

“The LPG ecosystem has grown exponentially across the value chain,” Mshelbila said.

He added that with the increased penetration and accessibility of the DLPG, there has been a remarkable reduction in the use of kerosene, firewood and charcoal.

He explained that this reduces the risk of respiratory diseases associated with smoke inhalation and increases alignment with the global campaign for a cleaner environment and lower GHG emissions.

“Today, the Nigeria Liquefied Petroleum Gas Association (NLPGA) in conjunction with Nigeria LNG Ltd. (NLNG) celebrates the 15th anniversary of uninterrupted domestic LPG supply in the country.

“The intervention has seen LPG supply increase from 60,000 MT in 2007 to over 1.3 million MT in 2021 (a growth of over 1,000%).

“Today, the Nigerian LPG market is considered the fastest growing in the world.

“This program has encouraged massive investment in LPG infrastructure and has created over 150,000 jobs in the sector and resulted in increased tax revenue for the government,” he said.

He said the federal government’s Decade of Gas program has further helped spark interest in propane, as evidenced by the start-up of home propane by NLNG, which had its first delivery in September 2021.

“NLNG has invested in a dedicated 13,000 tonne LPG carrier and security escort vessels facilitating efficient deliveries to Lagos and Port Harcourt terminals.

“It has invested in the refurbishment of the Lagos receiving terminal, improving the coastal delivery of LPG.

“It has also invested in throughput capacity at the Port-Harcourt inventory receiving terminal,” he added.

He praised the NLPGA for supporting and sustaining the value chain for 15 years.

NLNG is owned by four shareholders, namely: Nigerian National Petroleum Company Limited (49%), Shell Gas BV (25.6%), TotalEnergies Gaz & Electricite Holdings (15%) and Eni International NANVSàr.l (10.4 %). ). (NAN) (www.nannews.ng)

Edited by Salif Atjoko

About the Author