Nigeria LNG (NLNG) will supply its entire LPG production to the domestic market, the company announced, in line with government plans to boost local consumption.
"Committing 100% of our LPG supply is an important step in our domestic gas supply journey," said NLNG Managing Director Philip Mshelbila.
The company supplied its first cargo of butane to the domestic market in 2007. NLNG supplied its first cargo of propane to the local market three months ago.
By the end of 2020, Nigeria's LPG consumption had surpassed one million tons. NLNG supplied 400,000 tons in 2021, almost all of the company's butane production. The domestic market accounted for the largest share of its production, the executive said.
"But that was not enough for NLNG, hence this commitment to do everything we can and supply 100% of our LPG production to the domestic market," Mshelbila said.
The official said that gas is the cleanest fossil fuel and that Nigeria should benefit from its own gas resources.
"Gas is essential to life and living right now because it can support everything we will need to grow our economy and create better living standards for Nigerians. We need to change the narrative, and NLNG is pragmatic about it," he said.
NLNG supplies LPG to Lagos and Port Harcourt via the Alfred Temile, a 13,000 ton LPG vessel.
The Nigerian National Petroleum Corp. (NNPC) holds 49% of NLNG's capital. Shell Gas holds 25.6%, TotalEnergies Gas & Electricity Holdings 15% and Eni International 10.4%.
Train 7 crawl
In August 2021, NLNG defended its work on LPG. The company said its supply was competitive with other sources. Building Train 7, it said, would allow it to provide additional domestic supplies and deepen the LPG market.
NLNG made the final investment decision (FID) on its Train 7 project in late 2019. The company acknowledged this week that construction had still not begun. It was aiming for exports to start in 2025.
He held a ceremony at By mid-2021 on the inauguration.
The note came in a warning about falsified job offers. NLNG and its subcontractors have not even begun recruiting for the construction of the project, he noted.
A joint venture of Saipem, Chiyoda and Daewoo E&C (SCD) is to build the train.