Nigerians may soon pay less for cooking gas as Nigeria LNG Limited (NLNG) now channels all its Liquefied Petroleum Gas (LPG) to the local market. The company's Managing Director, Adeleye Falade, announced that the shift is driven by a significant increase in domestic demand, not a drop in production.
NLNG Prioritizes Local Supply
Speaking during a courtesy visit to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, Falade emphasized that 100% of NLNG's LPG production is now dedicated to the domestic market. He noted that this decision reflects the growing need for cooking gas across the country and aims to stabilize the market.
Falade also stressed the importance of stronger collaboration in the upstream sector to ensure steady gas availability. He described the move as a deliberate step to shape and stabilize the LPG market in Nigeria.
Train 7 Project to Boost Capacity
Looking ahead, Falade revealed that NLNG's upcoming Train 7 project, expected to begin operations next year, will increase the company's production capacity by approximately 35%. This expansion will enable NLNG to enhance both local distribution and export volumes, potentially leading to lower prices for consumers.
NUPRC Reforms to Support LPG Growth
The Chief Executive of NUPRC, Oritsemeyewa Eyesan, welcomed the NLNG team and reiterated the Commission's commitment to creating a business-friendly environment aligned with the Federal Government's gas development agenda. She highlighted ongoing reforms introduced since December to comply with the Petroleum Industry Act (PIA).
Eyesan noted that the Commission is repositioning itself as a business enabler, with regular stakeholder meetings to address challenges quickly. Improved regulatory responsiveness has strengthened investor confidence and encouraged key investment decisions.
Decade of Gas Initiative
Eyesan described the "Decade of Gas" initiative as a practical framework for boosting domestic gas use and export potential. She called on operators to match these efforts with strong performance, adherence to regulations, and disciplined investment.
Techno Oil Launches LPG Cylinder Manufacturing
In related news, Techno Oil has begun LPG cylinder manufacturing in Nigeria, aiming to produce the safest gas cylinders in the country with rigorous safety standards. The investment in LPG infrastructure addresses public health and energy access challenges, with a capacity of 5 million cylinders yearly, supporting local manufacturing and job creation.
