Nigeria’s LPG Supply Increases By 11% In One Month
The supply of Liquefied Petroleum Gas, LPG, has increased by 11 per cent to 83,900.761 Metric Tonnes, MT, in December 2020, according to the Petroleum Products Pricing Regulatory Agency, PPPRA.
A breakdown of data obtained from the PPPRA showed that of the 83,900.761MT supplied in December 2020, from 74,915.973 MT in December 2019, 42,578.841MT was imported, while 41,321.761MT was locally sourced.
It also indicated that of the 74,915.973MT supplied in the corresponding month of 2019, 57,861.211MT was imported, while 17,054.762MT was locally sourced.
However, commenting on the recent attainment of over one million Metric Tonnes consumption per year, the Nigeria LPG, Association, NLPGA, stated: “The year 2020 will be remembered for so many things, least of all is a once in a century global pandemic.
“But, within this year also, Nigeria’s LPG sector achieved a major milestone with the laudable achievement of exceeding the one million metric tonnes per annum mark for gas consumption.”
In a statement obtained by The Economic Confidential, the association stated: “As at December 30, 2020, LPG coastal supplies broke the one million tonnes barrier for the first time in Nigeria’s history, and Nigeria being the first country to hit this mark in West Africa sub-region!.
“Added to this are additional milestones such as incremental volumes from inland producers, as well as the commissioning of two major inland production plants.
“These are significant achievements, in spite of a COVID-19 ravaged economy, global economic downturn and numerous business environment bottlenecks.
“Congratulations to industry operators and the relentless efforts of private sector led ruggedness of members of NLPGA, the umbrella body for all stakeholders of the Nigeria’s LPG sector.
“The NLPGA remains committed to the sectoral growth and development of gas, market penetration and the multiplier effect of expanded gas utilisation as can be gleaned from the initiatives and policy direction of government.
“The declaration of 2020 as the ‘Year of Gas’ by the minister of State for Petroleum Resources, was no fluke; the recent pronouncement by President Muhammadu Buhari that 2021-2030 is Nigeria’s next ‘Decade of Gas Development’ is a clear wake up call for massive growth and investment from both local and foreign investors to take advantage of the ever dynamic and the fast-growing LPG market segment in Nigeria.”
It also stated: “Notably contributing to this feat are the positive and forward thinking policies of the Federal Government, the support from the office of the Vice President and it’s National LPG expansion plan.
“Equally appreciated were the initiatives of the National Gas Expansion Programme, NGEP, of the Ministry of Petroleum Resources. “We recognise the continued support and enforcement efforts of government agencies such as the Standards Organization of Nigeria, SON, and the Department of Petroleum Resources, DPR, in conjunction with the Joint Working Committee in promoting, educating and ensuring the safe use and handling of LPG in Nigeria.
“In our effort to achieve additional one million tonnes in the next 2 years, the NLPGA continues to advocate for international best practices, investment unlocking policies and incentives, safe switch to gas from other dirty fuels, and the famous ease of doing business initiatives devoid of counter-productive and unpopular levies to further catalyse sectoral growth for the consequent public health safety and macroeconomic advantages to Nigerians, in particular, and the nation’s economic wellbeing in general.”
It also added: “Congratulations, once again, to Nigerians for demonstrating, through increasing demand for LPG as clean cooking fuel and that we do understand the benefits and overall imperatives for an accelerated switch to gas from use of dirty fuels.
“And well done to Nigeria’s LPG sector players for ensuring that the market was not starved of sustained supplies.”