
Ike Amos
15 August 2018, Sweetcrude, Abuja — The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has enjoined the Nigeria LNG Limited, NLNG, to make meaningful contributions towards driving gas consumption in Nigeria, and not placing its emphasis solely on production of liquefied natural gas, LNG, for export.
The minister, who spoke during a visit to the NLNG plant complex in Bonny Island, Rivers State, said: “With the market beginning to thin out, with a lot more LNG investments coming out, even within Africa, the NLNG market was likely going to become very challenged. I am happy you noted that long-term contracts are going out of fashion. Then, you need to begin to invest in your own market.
“I urge you to work with us on this trend to build infrastructure. The reality is that a huge amount of infrastructure is required to deploy LPG consumption in Nigeria, and for the common man on the street, that is the most important item.”
Kachikwu stated that the NLNG should contribute towards the creation of distribution centres, and also in the creation of incentives for people to buy gas at the right price, noting that this would help drive local gas consumption.
“We would have to sit down with you to begin to invest in that lower market, in terms of how you help that narrative to happen; and it might just be a couple of models set up in such a way that people see a shift in policy; not necessarily putting in money, but creating enough incentives that people can go to the bank, raise money and come to build these facilities. Without those, it is not going to happen,” he said.