NLNG Is Supplying All its Butane Production to Nigeria in January 2022 - Africa’s premier report on the oil, gas and energy landscape.

NLNG Is Supplying All its Butane Production to Nigeria in January 2022

Nigeria Liquefied Natural Gas (NLNG) Limited supplied its entire Butane (LPG) output to Nigeria’s domestic market in January 2022.

It is also supplying 50% of its propane production to the country (although its propane output is a minuscule fraction of the Butane production).

It is the first time the company would not export a single tonne of Butane. NLNG Ltd says it will do the same thing for Propane by January 2023, that is: its entire production of Propane will be supplied to the domestic market.

In 2021, the company increased its LPG supply commitment from 350,000 metric tonnes (or 28Million 12.5kg cylinders) to actual delivery of  400,000 metric tonnes (or 32Million 12.5kg cylinders) thereby directing most of its production into the domestic market. “But this was not enough for NLNG, hence this commitment to do all that we possibly can and supply 100% of our LPG production to the domestic market,” says Phillip Mshelbila, NLNG’s Chief Executive Officer.

The quantity of Butane supplied to the Nigerian market in 2021 was 378,000Tonnes. Propane volume was 21,000Tonnes. “Actual production of LPG depends on the volume and composition of feedgas we get from our gas suppliers”, says Andy Odeh, NLNG Ltd’s General Manager, External Relations and Sustainable Development. With this commitment it is expected that NLNGLtd will supply about 600,000Tonnes of both Butane and Propane into the Nigerian market in 2022. The volume of LPG consumed in Nigeria in 2021 was around 1.2Million Tonnes, according to government data.

 

 

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