NLNG to truck products into domestic market

[By Sopuruchi Onwuka]

Nigeria’s virtual pipeline solutions to domestic market supply will assume grand scale with the completion of the Bonny-Bodo Road project when the Nigerian Liquefied Natural Gas (NLNG) limited is expected to truck its products inland the country.

Managing Director Chief Executive Officer of NLNG, Engr. Tony Attah

Chairman of the Presidential Committee on implementation of the Nigerian Gas Expansion Programme (NGEP), Dr Mohammed Ibrahim, told The Oracle Today in chat brief chat in Lagos that the nation’s biggest gas processing company is being obligated by his committee to respond to growing demand for its products in the domestic market.

When reminded of the prevailing gaps in gas delivery infrastructure in the domestic market, Dr Ibrahim stated that arrangements were being worked out for the company which already feeds the domestic market with liquefied petroleum gas (LPG) also called cooking gas would now be supplying industrial and commercial consumers with LNG using virtual pipeline options.

He did not provide details of the arrangement in terms of volumes and supply destinations. He however stated that the N120 billion Bony-Bodo Road project sponsored by the company would enhance greater participation of the gas liquefaction company in meeting domestic demand for LPG and LNG.

The Oracle Today quotes the Managing Director of NLNG, Mr Toany Attah, of saying that the company would increase its LPG supply to the domestic market to 450,000 metric tons beginning from 2021. He said the increase in LPG allocation to the domestic market has already been approved by the board of the company.

Although NLNG is an export focused company, Mr Attah said that the company’s decision to intervene in the domestic market supply was of health, environmental and economic considerations.

He pointed out that about 100,000 Nigerian casualties form part of over a million women and girls across the poor countries of the world that die from health complications associated with kitchen fumes. He explained that increase in LPG supplies would significantly displace firewood, kerosene and other heavy pollutants from Nigerian kitchens.

He stated that the supply from NLNG would enhance the industry drive for deeper LPG penetration in the country and spur enterprises that would thrive along the supply chain.

It would be recalled that non existence of link road and navigable water channels had been the biggest challenge for NLNG in providing cooking gas for the host Niger Delta region; requiring the company to ship the product to Lagos; incur port charges, storage and logistics costs before round-tripping the product down to host Rivers State to enable consumers buy the product at costlier rate. 

With the Bonny-Bodo Road in place, Dr. Ibrahim said, all logistic bottlenecks hampering free flow of LPG and virtual LNG to commercial and industrial demand centres would be overcome.

The Nigerian LPG Gas Association (NLPGA) declares that Nigeria’s demand for LPG would reach 1.0 million tons by end of 2020 as the cleaner domestic fuel gets cheaper and increasingly displaces kerosene from Nigerian kitchens.

Managing Director of Rainoil Limited, Dr Gabriel Ogbechie, had in a virtual conference called on NLNG to oblige the domestic LPG market with meeting total demand with supplies from its facilities. Local sourcing of full domestic demand, he said, would save importers the trauma of foreign exchange procurement, importation costs and lean margins.

He added that local sourcing of LPG would also save the country associated foreign exchange demand and afford the consumers cheaper products.

Leave a Reply

Your email address will not be published. Required fields are marked *