A Review of the Nigerian Energy Industry

Cooking gas: NNPC to crash price, halt butane, propane export

*LPG or cooking gas refilling plant.

Ike Amos

11 January 2019, Sweetcrude, Abuja — The Nigerian National Petroleum Corporation, NNPC, Thursday, said it was set to implement an effective commercial framework that would halt the export of propane and butane which are major components in the production of Liquefied Petroleum Gas, LPG, or cooking gas.

In a statement in Abuja, the NNPC said the move to stop the export of propane and butane which is anchored by its Crude Oil Marketing Division would enable the Corporation boost supply of LPG to the domestic market thereby leading to a natural downward slide in the price of the product in the country.

The statement quoted the Group General Manager, Crude Oil Marketing Division (COMD) of the Corporation, Mallam Mele Kyari, as saying that, “Currently some of our butane and propane entitlements are exported largely due to a lack of vessels to make sure that these things come into the domestic markets and the absence of a commercial framework. What we are going to do is to make sure we put the right commercial framework in place so that those exports are converted into domestic consumption”.

Kyari who disclosed this at a strategy session said the Division was working in concert with stakeholders to create the enabling environment for in-country production of LPG and cessation of export of the country’s equity butane and propane entitlements due to the absence of in-country vessels for transport and other considerations.

The Human Resources said that the goal of the Division in 2019 was to complete the automation process in the marketing and sale of Nigerian crude oil grades which teed-off in 2017, noting that all hands must be on deck to achieve 100 percent, end-to-end conclusion of the process.

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