The federal government and the Nigeria Liquefied Natural Gas are planning to move liquefied natural gas by train to ease delays at loading terminals and improve supply across the country
THE federal government through the office of the Vice President, is working hard with the Nigeria Liquefied Natural Gas, NLNG, and other stakeholders to bridge the existing gap in the supply of liquefied petroleum gas, LPG. They are working to prevent delays at loading terminals in Lagos, as well as improve supply of the product across the country.
A statement issued by the Nigerian Liquefied Natural Gas, quoted Babs Omotowa, its chief executive officer as saying that operators were striving to remove bottlenecks in the supply chain of LPG. He added that they are working to improve funding of the sub-sector and use rail to move the product.
“Efforts are being made to explore the option of using trains to ferry LPG to users across the country. When we use trains to transport LPG to different parts of the country, we are trying to ensure that the product gets to users safely, faster and cheaper,” Omotowa said,
The NLNG has increased supply from 150,000 metric tonnes in 2007 to 250,000 metric tonnes and could supply 500,000 metric tonnes or more. It has carried out a study which identified problems such as the slow pace of growth of the terminals, use of some terminals for supply of petrol and smaller markets as drawbacks to the government’s goals of ensuring that all Nigerians use LPG.
A study carried out by NLNG revealed impediments such as the delay in offloading the LPG from the vessels that brought it from Bonny, Rivers State, to Lagos, and long hours of transporting the product by roads to different parts of the country.
“That is why we are talking to the Federal Government, investors in the oil and gas sector, and other interested parties on the issue of making LPG accessible by consumers. Efforts are being made to explore the option of using trains to ferry LPG to users across the country. When we use trains to transport LPG to different parts of the country, we are trying to ensure that the product gets to users safely, faster and cheaper.
“For instance, if you truck cooking gas from Lagos to the North, you would have probably added $200 to the cost of transporting the product. This will inevitably increase the price of the product. But if you use the train, you are going to move bigger tonnes of LPG around the country.”
— May 30, 2016 @ 01:00 GMT