By Uthman Salami
The Marketing Manager, the Nigerian Liquefied Natural Gas (NLNG), Mr. Austin Ogbogbo, has attributed dearth of infrastructures as key factor responsible for major challenges in the distribution of of Natural Liquefied Gas, otherwise known as, cooking gas in Nigeria.
Ogbogbo, who made the clarification during an interactive session with journalists in Lagos, blamed the situation on dearth of infrastructure and other factors as major causes of the shortage.
The Marketing Manager further blamed marketers for their inability to offtake the full 450,000MTPA of Liquefied Petroleum Gas (LPG) allocated to the Nigerian market.
Ogbogbo emphasised that NLNG was not responsible for the supply shortfall of LPG, also known and the consequent price hike across the country.
The company also corrected the insinuation that NLNG produces 22 million tonnes per annum (MTPA) of LPG or cooking gas.
Igbogbo explained that the NLNG is primarily an export company that produces 22 MTPA of liquefied natural gas (LNG) and five MTPA of natural gas liquids (NGLs), and that it is also erroneous to say that NLNG contributes to the supply shortfall of cooking gas in Nigeria and consequent price hike.
“The price of LPG in the domestic market is dependent on several market factors, including the forces of demand and supply,” he said. On the supply side, NLNG plays a pivotal role in the Nigerian domestic LPG market in line with the commitment it made to help deepen the market.
Recently, the Company increased the volume of its annual commitment to the market from 350,000 to 450,000 metric tons, which is about 100 per cent of its Butane production. Butane gas is less volatile and is, therefore, suitable for cooking.