Hope for LPG Supply in Nigeria - Global Trade Magazine
  February 20th, 2017 | Written by

Hope for LPG Supply in Nigeria

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  • Supply logjam often impedes availability of Liquefied Petroleum Gas.
  • LPG supply difficulties may soon be over.
  • NNPC is taking steps to end the scarcity of cooking gas in Nigeria.

Newly-built Liquefied Petroleum Gas (LPG) Vessels, the MT Africa Gas and the MT Sahara Gas, are set to commence operations that will see them berth in Houston, Texas, to convey their first consignment of gas expected to be delivered to the West African coast from March 2017.

Both vessels’ operations are expected to actualize the vision of the Nigerian National Petroleum Corporation (NNPC) which hinges on boosting the availability of the commodity in Nigeria and the West African sub-region.

The two vessels will address the lingering challenges of supply, affordability and fraudulent activities of individuals and organizations seeking to adulterate cooking gas due to scarce supply.

MT Africa Gas has already taken the lead, commencing its maiden voyage by sailing towards the Caribbean/US Gulf Region. Sahara Gas is due to follow suit in the coming weeks.

Industry watchers have commended the NNPC for taking bold steps at tackling the scarcity of cooking gas in Nigeria. Experts have particularly lauded interventions towards ensuring sustainability, safety, and reliability for millions of consumers who depend on the commodity for their daily energy needs.

Considered as a cleaner, much safer and more affordable alternative to firewood and kerosene, the acceptability of LPG in West Africa has been affected by some challenges over the years.
These hiccups include- but are not limited to low supply and logistics arising from limited to lack of LPG vessels in the region.

But with the recent unveiling of two LPG vessels, being acquisitions driven by West Africa Gas Limited, a Joint Venture of NNPC and Sahara Group, there is a renewed optimism for supplies of cooking gas in the country.

These two vessels were christened at a naming event in Ulsan, South Korea. The joint venture is run by two companies, NNPC LNG Ltd, a wholly-owned subsidiary of NNPC and Sahara Energy’s oil and gas trading arm, Ocean Bed Trading Ltd (BVI).

Working through the JV, NNPC’s LPG policy will in addition to improving supply within West African states, check the menace of deforestation in the sub region. It is expected that in the long run, the growing negative impact of climate change across the globe will be drastically reduced.

While speaking at the inauguration of the LPG vessels in South Korea, the NNPC chief said it was “an outstanding achievement” for Nigeria considering the fact “that the joint venture between NNPC and Sahara is already recording success stories within a short period having been established in 2013.” He added that NNPC remains committed to ensuring an uninterrupted supply of cooking gas as well as the adoption of policies to drive sustainable development across the entire energy value-chain of the nation’s oil and gas sector.

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