Liquefied Petroleum Gas Producers in Nigeria. Total LPG Production Capacity (2.5 million MT) as per details below: Table 1-2: Total LPG production capacity by company in Nigeria Company LPG Production per Annum Domestic Obligation Supply PH Refinery 130,000 MT 130,000MT Warri Refinery 70,000MT 70,000MT Kaduna Refinery 160,000MT 160,000MT Sub-Total (1) 360,000MT 360,000MT Exxon Mobil 1,040,000MT Nil NLNG 830,000MT 150,000MT Chevron Escravos 280,000MT Nil Sub-Total (2) 2,150,000MT 150,000MT Total 2,510,000MT 510,000MT The demand of LPG in Nigeria is consistent over the years; supply of LPG from producers (o extractors) to distributors and marketing companies has been limited due to infrastructure deficit, which often creates scarcity. Besides that, LPG producers are also limited in numbers and LPG marketing companies need to have a quota of gas to be allocated by the producer. This factor makes LPG business vulnerable in the hands of LPG producers. In Nigeria, distribution of LPG began with NNPC & other private players. It started as an alternative to the then popular fuels of Nigeria - Coal, Kerosene, Biomass/wood and Dried Xxxx Cake. As per its prices, it was not feasible even to the then middle class to shift to LPG. In Nigeria, LPG finds is prime usage in Domestic sector with - consumption in households, in commercial sector, Auto LPG and in Industry. Currently, the LPG business is fragmented in two parts: Industrial & Commercial LPG and Domestic LPG. Both businesses run on base of understanding & regulation. Industrial & Commercial LPG is a more competitive business segment than the Domestic LPG. In Domestic LPG competition is largely limited by dividing boundaries of area for distribution of LPG. Product Pricing Until the year 2000, all domestic LPG was provided by the refineries. This LPG was largely butane rich LPG (>90%). Butane LPG prices ex-refinery was in the region of N40,000 per ton. Domestic cooking gas sold at Naira 400 per 12.5 kg cylinder. From year 2000 onwards, because the refineries were epileptic, prices of refinery LPG gradually shot up to N 90,000 per ton. Domestic cooking gas sold at Naira 1,500 per 12.5 kg cylinder By 2006, refineries were almost shutdown. Consequently, LPG prices shot up further to Naira 150,000 per ton. Xxxxx and Xxx Global started LPG importation. Imported LPG attracts 40 % duty. By 2007, prices became astronomical- up to Naira 250,000 per ton. LPG for cooking gas retailed at more than Naira 3,000 per 12.5 kg cylinder. Domestic LPG consumption dropped dra...
