Billy Okoye Moderator: The LPG market now commands a market value of over N100 billion, maybe he meant to say ($100billion) over the initial projection of N4 billion. Nigeria produces about 5 million tons of lpg annually .45 % of annual consumption with NLNG supplying 450,000 metric tons pa. While 55 % is still imported. This has shown that the lpg consumption in Nigeria is still very low. Still below the West African average.
The household energy mix in Nigeria is just 5 percent. We are still not where we want to be. Still far far away.
We need to do what India has done
CNG: is being proposed as an alternative to petrol. The advantages would be examined whether to use CNG or Autogas are the two of them to be combined?
Felix Ekundayo: demand is about 1.3million tons this year
Production is more likely about 1.8 to 2 million tons.
For us, it is not LPG or CNG but Collaboration that leads to optimal use of both the commodity
In terms of demand, we have industrial, shipping, domestic, bottles, Nlng exports, and autogas
Nigeria’s gas policy as approved by the federal Executive council has four components. It has domestic, Power, industrial components, and Autogas
Over the years stakeholders have concentrated on domestic demand in Nigeria. The sector has come 60 000 million tons several years a go to 1.3- 1.5 million tons expected this year. This is a humongous growth rate and it is happening in a deregulated market.
There is a plan for 5 million tons in the next years.
How are going to grow the demand to 5 million tons. This will depend on autogas and the expanding usage of gas in rural areas
For our Association, these are key points, rural expansion and autogas
Today we talk about Autogas because it is the lowest-hanging fruit.
Globally demand for LPG is about 300million tons
In terms of production in Nigeria, most production comes from gas processing plants
Nigeria really needs to take it place in terms of the Global market
What do we need to do in order to grow our markets?
- To grow the market we need to look at the demand side. The demand side globally has varied uses, the domestic side actually a fraction of consumption. It is the largest part of the pie but it is not dominant. In Nigeria, the domestic pie is totally dominant and what we want to do now is to introduce the other segment to it.
- Often we think import is the problem but it is not the problem. It is because we not producing enough in the country.
- The exchange rate influences the market.
- High demand low supply. So import must come in to support what we have in the country.
Coastal supply points is the great sources of supply. LpG Is the lowest hanging fruit in order to supply autogas and supply to rural areas.
