The Nigeria Liquefied Natural Gas Limited (NLNG) has attributed the high cost of liquefied petroleum gas (LPG) to logistics and lack of infrastructure.
The General Manager, External Relations, Nigeria LNG, Dr Kudo Eresia-Eke said the cost of LPG (also called cooking gas) is supposed to be cheaper than it is, but owing to some factors, off-takers of the commodity add the extra cost they incur, making the end-users pay more. The price of 12.5kg cylinder of cooking gas is about N3000 in Lagos.
He explained that if the infrastructure is available, the product would have be supplied from NLNG’s Bonny plant in Rivers State to Lagos, and to consumers but for lack of infrastructure, the product is delivered through vessels (ships).
The ships take the LPG from Bonny to Lagos from where it is pumped into tanks at depots.
Eresia-Eke said the intervention of NLNG has reduced the cost of the gas. According to him, NLNG is committed to delivering 250,000 tonnes of LPG yearly and has signed sales and purchase agreements (SPAs) with 15 off-takers for the lifting of LPG for the domestic market.
