The Nigerian National Petroleum Corporation, NNPC, has said it was ready to execute the right commercial framework that would bring to an end the export of propane and butane, major components in the production of Liquefied Petroleum Gas, LPG, also known as cooking gas.
The corporation’s Group General Manager, Group Public Affairs Division, Ndu Ughamadu, who made the declaration, said the move to stop the export of propane and butane, which is anchored by the Crude Oil Marketing Division of the corporation, would create room for the boosting of the supply of LPG to the domestic market, which would in turn lead a natural downward slide in the price of the product across the country.
Ughamadu, quoting the Group General Manager, COMD of the corporation, Mele Kyari, in a statement issued in Abuja said, “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.
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“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 noted that the division was working hand in hand with stakeholders to create an environment for in-country production of LPG and stoppage of export of the country’s equity butane and propane entitlements due to the absence of in-country vessels for transport and other considerations.
According to him, the goal of the division in 2019 is 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 per cent end-to-end conclusion of the process.
