NLNG to raise cooking gas output by 50%

Nigeria Liquefied Natural Gas (NLNG) is set to boost its Liquefied Petroleum Gas (cooking gas) output by 50% by the end of 2027, aiming to address the growing demand for cooking gas in the country. The Managing Director and CEO, Adeleye Falade, announced this during the inauguration of the Asiko Energy Holdings Limited LPG and propane terminal in Lagos.

According to Falade, NLNG produced approximately 500,000 tonnes of LPG within the country last year, but this capacity only accounted for about 40% of the nation's demand, signaling the necessity for increased supply and infrastructure investment. NLNG pioneered the introduction of cooking gas into Nigeria in 2005, starting with a production volume of 70,000 tonnes, which later reached 500,000 tonnes as of last year.

Falade emphasized that the company's board resolved in 2022 to supply 100% of its retained LPG production to the domestic market, despite being primarily export-focused. The primary obstacle, according to Falade, is inadequate infrastructure rather than a scarcity of gas resources. He attributed this to Nigeria's significant infrastructure deficit, which Asiko Energy Holdings is addressing.

NLNG aims to increase its LPG production capacity by 50% by year-end, relying on the infrastructure support provided by companies like Asiko Energy. Asiko Energy's Chairman, Alex Ogedegbe, highlighted the significance of collaboration between the government and private sector in developing Nigeria's gas infrastructure, noting that the LPG and propane terminal had an approximate capacity of 5,000 metric tonnes.

The terminal, operational after a 20-year development process, receives LPG from three major jetties and is designed to accommodate a variety of LPG types, including cheaper blends for the Nigerian market. The Bank of Industry has supported the Asiko project for over five years, aiming to boost energy security, job creation, and industrial development in the country.