The Nigeria LNG Limited has said it does not contribute to the supply shortfall of Liquefied Petroleum Gas, also known as cooking gas, and the hike in the price of the commodity in the country.
The NLNG, in a statement said it recently increased the volume of its annual commitment to the market from 350,000 metric tonnes to 450,000 MT, which, according to the company, is about 100 per cent of its butane production.
According to the statement by its General Manager, External Relations and Sustainable Development, Eyono Fatayi-Williams, NLNG supplied over 80 per cent of its LPG sales (butane/cooking gas) to the Nigerian market in 2020.
The company noted that several factors such as VAT and forex impacted the pricing of the product indexed to the international pricing model.
The company said, “It is grossly inaccurate to state that NLNG produces 22 million tonnes per annum of Liquefied Petroleum Gas, otherwise known as cooking gas. NLNG is primarily an export company that produces 22 MTPA of Liquefied Natural Gas and 5 MTPA of natural gas liquids.
“It is also erroneous, to say the least, that NLNG contributes to the supply shortfall of cooking gas in Nigeria and consequent price hike.
“The price of LPG in the domestic market is dependent on several market factors, including the forces of demand and supply.”