Domestic LPG Consumption Exceeds 1million Metric Tonnes In 2020 -PPPRA

Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA).

The Petroleum Products Pricing Regulatory Agency (PPPRA) has announced that Nigeria’s domestic Liquefied Petroleum Gas (LPG) consumption exceeded 1million metric tonnes in 2020, making 2020 the first year in the nation’s history where LPG consumption has reached the one million MT threshold.

This was disclosed in a statement by the Executive Secretary, PPPRA, Abdulkadir Saidu in Abuja.

He said, Nigeria consumed 840,594.37 MT LPG in 2019, indicating an increase of 60.5% over 635,452.061MT recorded in 2018.

This steady and sustained pattern of growth, according to him, culminated in the over 1million metric tonnes of LPG domestic consumption milestone in 2020 has placed the country 1st in West Africa and one of the leading LPG consuming nations on the continent.

With this laudable feat, the country is on track to meet the 5million MT by 2022 target, set in the Nigeria Gas Policy (NGP) of 2017, which translates to an average of 1million MT/year, provided we collectively sustain and ramp up intervention efforts and initiatives of government and all stakeholders.

The Federal Government’s resolve to deepen LPG penetration in the country seeks to create a healthier life for all Nigerians by providing access to a cleaner source of energy for cooking, vehicular transportation and other domestic uses.

The attainment of the one million MT domestic utilization milestone is a testimony to the progress made so far in ensuring the provision of alternative sources of fueling to Nigerians in place of the traditional PMS, AGO and DPK and altering the nation’s energy mix in favour of locally-available options.

Already, Nigeria Liquefied Natural Gas (NLNG) Limited, has increased its allocation of LPG to the domestic market from 350, 000MT to 450, 000MT in 2021 in order to support this laudable goal.

Also, the Nigerian National Petroleum Corporation (NNPC) recently commenced LPG production and load-out in its newly commissioned Nigerian Petroleum Development Company Limited (NPDC) Oredo Gas handling facility, which has an estimated production stream of 330MT daily.

The remarkable growth in the domestic LPG market remains largely driven by the impact of the Federal Government’s policies and programmes, coupled with the efforts of relevant stakeholders and regulatory bodies in the industry, all of which have led to the entrance of new players (investors) in the sector due to the creation of an enabling environment.

The avowed commitment of His Excellency Mr. President and the Honorable Minister of State for Petroleum Resources, Timipre Sylva to the Gas Revolution Agenda remains the game changer and key growth driver.

The culmination of the Year of Gas with the National Gas Expansion Programme (NGEP) Autogas rollout, is expected to foster exponential growth within the industry as more and more Nigerians begin to embrace the utilization of LPG/CNG as fuel for their automobiles.

We wish to assure all stakeholders that the PPPRA remains steadfast in its commitment to growing the LPG/Gas value chain to such heights that deliver maximum dividends to Nigeria and Nigerians.

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