Nigerians Consumed 145,000MT of Cooking Gas in 2012

Nigerians consumed a total of 145,000metric tonnes of Liquefied Petroleum Gas (LPG), otherwise called cooking gas in 2012, representing an increase of 11.5 per cent from the 130,000metric tonnes consumed in 2011.

Chairman of Nigerian Liquefied Petroleum Gas Association, Alhaji Auwalu Ilu, who gave the figures last week stated that the Nigeria Liquefied Natural Gas (LNG) Limited largely accounted for the supply.

He attributed the improvement in consumption to stability in the price of the product, steady supply and greater understanding by the people.

"I think the improvement recorded was due to the steady supply, stable price and people's understanding that LPG is better than kerosene and other fossil fuels," he said.

Ilu stated that of the 145,000metric tonnes consumed in 2012, the NLNG Limited supplied 118,000metric tonnes, while Port Harcourt and Warri Refineries supplied 37,000metric tonnes.

Ilu was also the chairman of the six companies referred to as Off-takers or Off-takers' Club appointed by the NLNG Limited in 2007.

The off-takers are traders with large vessels, pre-qualified by NLNG to lift LPG from its plant in Bonny Island in Rivers State for sale on the high sea to marketers with small vessels and storage plants and terminals.

Following the hike in the price of 12.5kilogramme LPG Cylinder from N1, 200 to over N6, 000 in 2007, former President Olusegun Obasanjo had directed the NLNG Limited to set aside certain allocation of LPG for domestic consumption because the hike was caused by over-dependence on importation.

The NLNG consequently appointed six companies during a prequalification exercise to lift LPG from its plant in Bonny.

These initial six companies include Hyson, a subsidiary of Nigerian National Petroleum Corporation (NNPC); Le Global Oil and Gas Limited; Line Train Gas; Simeons; Hernik Gas and Greenfield International Energy.

NIPCO Plc also later joined the Off-takers' Club in the distribution of LPG in the country and the intervention of these companies and the NLNG has since crashed the price of LPG to a manageable level, that is affordable to consumers.

Ilu explained that Nigerians were increasingly becoming aware of the benefits of the LPG due to sustained campaign by the stakeholders and the media.

At the beginning of the intervention programme, the NLNG had committed to make available 150,000mt of LPG yearly to the local market.