The Nigerian National Petroleum Corporation (NNPC) is set to implement an effective commercial framework that would halt the export of propane and butane which are major components in the production of Liquefied Petroleum Gas (LPG), also known as cooking gas
The Corporation explained in a press release by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, that the move to stop the export of propane and butane anchored by the Corporation's Crude Oil Marketing Division would enable the Corporation to boost the supply of LPG to the domestic market, 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, “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. 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 that the division was working in concert with stakeholders to create an enabling environment for in-country LPG production and cessation of export of the country’s equity butane and propane entitlements due to the absence of in-country transport vessels and other considerations.
The COMD GGM stated that the division's goal 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.
