* Harps On Domestic Blending, Imports
The Federal Government has initiated inward looking strategy with Nigeria LNG and other stakeholders for blending of Liquefied Petroleum Gas ( LPG) to boost supply to domestic markets.
In the short run supply strategy , Government said Gas marketers had indicated their readiness to increase imports, while anticipated deliveries from new domestic facilities, including the Seplat gas facility, all geared towards boosting supply to domestic markets in the coming weeks.
This approach will place Nigeria in a better position to overcome the effects of supply uncertainty arising from conflict around the Straits of Homurz in the middle East.
Daily Newscraft gathered that these strategies were fall out of the meeting between the Minister of State Petroleum Resources (Gas), Rt Hon. Ekperikpe Ekpo and stakeholders held in Abuja to address rising cost of LPG amidst shortfall in supply to the local market .
according to the spokesperson to the Minister Mr Loius Ibah, the emergency stakeholders’ engagement was convened to develop coordinated solutions to the recent increase in cooking gas prices.
He said the Minister directed regulatory and security agencies to immediately clamp down on the diversion, hoarding and illegal storage of LPG as part of measures to ensure adequate supply across the country and stabilise the current rising prices.
Describing the rising cost of LPG as a matter of national concern with significant implications for households, small businesses and economic stability, Ekpo said the government remained committed to easing the burden on Nigerians.
He directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen market oversight, develop a robust pricing framework to guide the market, and sanction operators engaged in practices that distort the market.
Ekpo also urged the NMDPRA to collaborate with the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to support enforcement efforts, eliminate artificial scarcity and ensure the uninterrupted movement of LPG across the country.
“We have directed the NMDPRA to intensify monitoring, engage operators and work with security agencies to discourage hoarding, eliminate artificial scarcity, and strengthen transparency in distribution and pricing,” he said.
The Government is also exploring a local blending initiative involving Nigeria LNG Limited, domestic producers and depot owners, aimed at improving supply, reducing dependence on imports and supporting greater price stability.
“There is no cause for panic. The Government remains committed to ensuring adequate domestic gas supply and to advancing the Decade of Gas Initiative as a pathway to cleaner cooking, industrial growth and energy security,” he said.
Chief Executive of the NMDPRA, Mr. Rabiu Umar, who also addressed the meeting, said the Authority had commenced an enforcement campaign targeting pricing and supply-chain practices, warning that operators responsible for excessive price increases would face stiff sanctions.
“We are going to be much more aggressive in ensuring that no factor is allowed to keep prices at excessively high levels. We expect to see a significant improvement in supply and a reduction in prices before the end of next month,” Umar said.
The engagement was attended by senior representatives of key gas suppliers, marketers, distributors and consumer groups, including the Nigerian Gas Association (NGA), the Major Energy Marketers Association of Nigeria (MEMAN) and the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), among others.
