By Akpobor Jirue
The Petroleum Products Pricing and Regulatory Agency, PPPRA, has revealed that supply of Liquefied Petroleum Gas, LPG, otherwise known as cooking gas, rose by 3 per cent in the first half (January – June) of 2021.
According the data from the agency, gas supply for the period stood at 426,331.387 million tonnes, MT in the first half of 2021, indicating an increase of 3 per cent, when compared to 414,934.305MT, supplied in the corresponding period of 2020.
It also showed that 216,269.109MT was imported from the global market in 2021, indicating an increase of 6.32 per cent compared to 230,858.205MT imported in the corresponding period of 2020.
The import was attributed to rising demand, which compelled operators in the sector to import from the global market, despite increased domestic supply from the Nigeria LNG Limited.
However, NLNG Limited, stated that: “For over 10 years, NLNG’s intervention in the supply of Liquefied Petroleum Gas, LPG, otherwise known as cooking gas, to the domestic market under the NLNG Domestic LPG, DLPG Scheme has helped reduce the use of dirty fuel sources for cooking. It has also stimulated growth in the industry by guaranteeing LPG supply, availability, affordability and enabling the development of a value network for a sustainable ecosystem towards a better Nigeria.
“Between 2007 and 2018, NLNG cumulatively supplied over 1,452kt of LPG to the domestic market, spurring a steady rise in annual domestic consumption in a market that was below 50kt per annum in 2007 to over 600kt per annum in 2018. To ensure a steady supply of products, deliveries are made through NLNG’s dedicated vessel chartered for the DLPG Scheme.
“The ongoing DLPG market deepening strategy yielded some further dividends with the commencement of deliveries to Stockgap Terminal in Port Harcourt, as part of deliberate moves to encourage the growth of the sector beyond Lagos and reduce the impact of congestion of the Lagos ports on deliveries into the market.
“In a continuous demonstration of its commitment to its vision of “helping to build a better Nigeria,” NLNG has committed to delivering 450ktpa of DLPG annually to the domestic market through Nigerian companies with whom it has signed Sales and Purchase Agreements, SPAs. The number of these off-takers has increased from just six at the inception of the DLPG Scheme in 2007 to 33 in 2018.”