Gas shortage: NLNG increases supply to local market from 250000mt to 450000mt per annum

By Uthman Salami

The Nigeria Liquefied Natural Gas (NLNG) has said that the the company has increased gas supply into Nigerian market from 250000MT to 450000MT per annum in its quest to subdue the shortage of gas supply in the country.

For months now, Nigerian has been battling with excruciating increment in the prices of gas as supply has remained short, making many many Nigerians on the look out for alternative.

However, NNLG in its keenest efforts to curtail gnawing effect of gas, unveiled plans to reduce its Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, exports in order to increase supply to the domestic market and crash the soaring price.

Managing Director, NLNG, Philip Mshelbila made this known at the yearly conference of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos.

According to the NLNG Boss, the company was now increasing supply to the domestic market to 450,000 mt per annum, from 250,000mt per year earlier supplied.

Without mincing words, he said “As part of the measures to support the Federal Government’s efforts to deepen domestic gas supply and economic growth, Nigeria LNG is reducing LPG exports and increasing supplies to the domestic market. NLNG is now increasing supply to the domestic market to 450,000 mt per annum.”

Recall that NLNG, is a joint venture (JV), whose ownership spans between the NNPC and Shell, Eni and TotalEnergies, with a production of about 7 million mt/year of LPG (propane and butane) from the six trains.

The company also said it had increased the number of off-takers to 43 from the initial six contracted in 2007 so as to meet the rise in supply volume.

Managing Director, Shell Nigeria Gas, Ed Ubong, said while much of the gas from the Shell-operated Gbaran-Ubie field, which produces about 864 MMcf/d of gas, is for export, the company is building infrastructure to deliver the gas to local industries.

Ubong said, “Shell is investing in a gas portfolio that will increase supply for Nigerian and international customers via an expanding network of plants, pipelines and export terminals.”

On his part, the Managing Director, Seplat Petroleum, Roger Brown, said the company supplies a third of the gas that goes into power generation in the country, assuring that the company is vigorously working in line with the Federal Government’s Decade of Gas agenda.

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