The Nigeria Liquefied Natural Gas (NLNG) has identified railway as a viable option to achieve deeper distribution of Liquefied Petroleum Gas (LPG) and boost its local consumption.
Specifically, it says Port Harcourt offers such opportunity for the expansion of the LPG distribution market to the East and the North via the railway network, adding, however, that trucking would provide limited support to the business.
The firm plans to keep supporting growth of the LPG industry by dedicating 350,000 metric tonnes yearly cooking gas to the domestic market to ensure reliable and affordable supply.
In a presentation in Lagos at the weekend by NLNG Manager, Sales Administration, Mr. Ahmed Joda, described Lagos as the primary LPG distribution point in the country, lamenting that the challenge is that the Lagos port is congested.
Opening up other distribution points in parts of the country as well as developing transport modes to other discharge points would lead to advancement of the LPG market, he said.
The presentation titled: Unlocking domestic LPG investment opportunities, was presented at the Nigeria Liquefied Petroleum Gas Association (NLNGA) conference.
Joda said: “NLNG also advocates and encourages infrastructure development to ensure decongestion of receiving and storage facilities and expansion of the facilities with the construction of new ones.”
According to him, LPG consumption is expected to grow to 1.7million tonnes yearly by 2020, if extensive intervention strategies are adopted, stressing that developments in the market already support this projection.
He said while NLNG is focusing on optimising coastal delivery to Apapa-revamp NPMC jetties, optimising shipping to reduce product shipping costs, and encouraging storage capacity development, there is need for continuous engagement of stakeholders (off-takers) on safety and active participation in an LPG conversion scheme.
The NLNG Manager, Sales Administration added: “NLNG will continue to play a leading role in policy advocacy on LPG usage/adoption, safe operations and good practice.”
Already, NLNG has committed to LPG supply of 350ktpa, through a dedicated vessel while advocating infrastructure development, and collaboration with government and other stakeholders.