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Nigeria LPG production now 5 million tonnes annually- NLNG



The Nigerian Government revealed that Nigeria currently produces about five million tonnes of Liquefied Petroleum Gas (LPG) annually.

This was disclosed in a statement by Dr. Adeyemi Dipeolu, Special Adviser to the President on Economic Matters in the Office of the Vice President on Wednesday at the India-Nigeria Liquefied Petroleum Gas (LPG) Summit Abuja, 2022.

He also noted that only 8% of Nigeria’s production is consumed locally.

What they said:

The Presidency noted that domestic LPG production stands at about 45% of annual consumption, with Nigerian Liquefied Natural Gas Limited (NLNG) supplying 450,000 metric tonnes per annum while 55% is imported.

The India-Nigeria LPG summit was hosted by Nigerian National Petroleum Company Limited (NNPC Ltd) with the support of the Office of the Vice President and the World LPG Association (WLPGA), to boost bilateral trade between both countries.

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Dipeolu revealed that Nigeria had the ninth largest proven natural gas reserves in the world, and also the second largest producer of LPG in Africa after Algeria.

“LPG adoption in the Nigerian market, of course, is still very low with per capita consumption at about 1.8 kg, which is below the West African average.

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“The household energy mix in Nigeria is about 5% LPG, 65% biomass, and 30% kerosene.

“The preference for the use of other sources is largely due to high switching costs associated with the acquisition of cylinders and LPG stoves, lack of awareness of associated benefits, and safe LPG handling across consumer basis.

“There is also the high cost of LPG in comparison with alternative fuels, insufficient and inappropriate cylinders in circulation, and inadequate infrastructure, especially trucks, roads, rail pipelines, and plants,” he said.

He noted the need for imperative policies, incentives, and investment to grow the Nigerian LPG market and also make cleaner fuel available, accessible, and affordable, not only for household cooking, but also in autogas, captive power generation, heating, and cooling as well as agriculture and industry.

In case you missed it

  • The National Bureau of Statistics (NBS)  stated last week that the average retail price for refilling a 12.5kg cylinder of cooking gas increased by 0.77% on a month-on-month basis from N9,824.07 in July 2022 to N9,899.34 in August 2022 on average.
  • In some states across the country, the essential commodity sold for as much as N11,225 in August 2022.
  • This may look like a small increase on a monthly basis until the 101% rise compared to last year is considered. The 5kg cylinder which sold for N2, 215.33 in August 2021, now sells for N 4,456.56 on average.