…plans crashing price of cooking gas
By Anthony Okafor
The Nigerian National Petroleum Corporation, NNPC, has said it will put up an effective commercial framework to end the export of propane and butane.
Propane and butane remain major components in the production of Liquefied Petroleum Gas, LPG, popularly known as cooking gas.
In a statement by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, the NNPC stated that the move to stop the export of propane and butane which was anchored by the Crude Oil Marketing Division of the Corporation would enable it 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 NNPC spokesman quoted the Group General Manager, Crude Oil Marketing Division, COMD, of the Corporation, Mallam Mele Kyari, as saying: “Currently some of our butane and propane entitlements are exported largely due to 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”.
Mallam Kyari who disclosed this at a strategy session, said the Division was working 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 absence of in-country vessels for transport and other considerations.
Kyari 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.