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NLNG reduces cooking gas exports to meet domestic demand ─CEO

*Nigeria LNG Limited says it has increased its committed volume to the market by consistently reducing export LPG volumes to satisfy local demand while increasing domestic provision

Isola Moses | ConsumerConnect

In an effort at resolving the current challenges around the availability of cooking gas, the Nigeria Liquefied Natural Gas (NLNG) Limited says it has reduced its exports of Liquefied Petroleum Gas (LPG), also known as cooking gas, so as to meet the growing demand in the domestic market.

ConsumerConnect learnt Dr. Philip Mshelbila, Managing Director and Chief Executive Officer (CEO) of NLNG, said this in Lagos while highlighting the company’s contribution to domestic LPG supply in Nigeria.

Cooking gas consumers at a depot in Nigeria

Dr. Mshelbila, represented by Dr. Sophia Horsfall, Manager of Corporate Communications and Public Affairs of NLNG, at a conference organised by energy correspondents Tuesday, November 2, 2021, disclosed in response to calls for NLNG to supply LPG domestically, the company intervened in 2007 to ease the challenges around the availability of LPG in the country.

The NLNG had since then consistently made the product available in the country, stated he.

The NLNG Managing Director and CEO said: “The company has increased its committed volume to the market by consistently reducing its export LPG volumes in satisfaction of domestic demand, increasing domestic provision from 50,000MT in 2007 to 450,000MT from 2021.

“NLNG provides a dedicated vessel for this purpose, LPG Vessel, Alfred Temile.

“NLNG has taken steps to diversify the supply base of the product by expanding its delivery point from the Lagos Terminals to include a Port Harcourt Terminal to ensure products are not concentrated in one region by infusing flexibility in supply base.”

Mshelbila said the benefits of gas to the country would increase on the back of the Train 7 project, which would expand NLNG’s capacity by 35 per cent from 22 million metric tonnes per annum to 30MTPA.

According to him, the Train 7 project will add immense value to the country by stimulating inflow of about $10billion Foreign Direct Investment to Nigeria as part of the project scope.

The NLNG Chief further noted that the project would create over 12,000 direct jobs and 40,000 additional indirect construction jobs.

“This will be a massive boost to Federal Government’s commitment to create jobs and move the poverty index positively,” Mshelbila

The project, he said, would further the development of Nigerian local capacity and businesses through the 100 percent in-country execution of construction works, fabrications and major procurements.

Mshelbila added that it would ultimately increase the company’s volume supply to the global market and keep the country on the top suppliers’ chart as world LNG demand grows.

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