Nigeria earns N69bn from LPG sales

21 October 2014, Lagos – Nigeria earned about N68.957 billion from lifting Liquefied Petroleum Gas, LPG, for both export and domestic consumption in 2013, the Nigerian National Petroleum Corporation, NNPC, has revealed.

NNPC-engineersThe NNPC in its Annual Statistical Bulletin 2013, disclosed that the country lifted 417,924 metric tonnes, MT LPG in 2013, despite LPG production of 409, 712 MT.

The Nigerian Association of LPG Marketers, NALPGAM, using the Mont Belvieu LPG price, put current price of LPG at N3.3 million for 20 metric tonnes, translating to about N165,000/ MT.

Belvieu LPG price is the international pricing model used by the Nigeria LNG Limited, NLNG, to sell gas to the domestic market.

The Bulletin in a breakdown of LPG production and lifting in 2013, indicated that Chevron and NNPC produced 163,885 MT and 245,827MT respectively, while both companies lifted 150,046 MT and 267,878 MT respectively.

To this end, the NNPC accounted for 60 per cent of LPG production and 64 per cent of LPG lifting for export and local consumption, while Chevron accounted for 40 per cent and 36 per cent of LPG production and lifting respectively in 2013.Further breakdown showed that Nigeria’s highest LPG lifting was recorded in November, with 59,669 MT; followed by September 59,035 MT and March 58,608 MT.

Other LPG lifting were: January 29,833 MT; February 29,871 MT; April 29,894 MT; May 29,580 MT; June 36,962 MT; July 54,649 MT; while in August 29,824 MT.

There were no LPG lifting in October and December 2013, according to the NNPC Report.

In the area of LPG production, May, March, and June 2013 recorded the highest output of 39,498 MT; 39,104 MT and 35,597 MT respectively.

Others were: January 34,802 MT; February 28776 MT; April 34,652 MT; July 32,526 MT; August 32,473 MT; September 31,562 MT; while in October, November, and December 33,780 MT, 32,254 MT and 34,689 MT were produced respectively.

Furthermore, the report disclosed that a total of 1.191 million MT, MMT of Natural Gas Liquid, NGL, was produced in 2013, while 1.176 MMT NGL was exported.

Specifically, 435,867 MT, 394,548 MT and 360,995 MT of propane, butane and pentane respectively, were produced in the period under review, while 443,550 MT, 396,312 MT and 336,397 MT of propane, butane and pentane respectively were lifted.

Indicating further, the Bulletin put total crude oil and condensate production in 2013 at 800.488 million barrels, giving a daily average of 2.19 million barrels per day (mmb/pd). This is lower than the previous year’s by six per cent.

“In the gas sector, a total of 2.325 trillion Standard Cubic Feet (SCF) of Natural Gas production was reported by 25 companies. This shows a decrease of 9.88 per cent when compared with 2012 production.
Michael Eboh – Vanguard

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