LPG Consumption Survey : Assessment of Market Opportunities and Penetration.
With huge reserves of over 185 trillion cubic feet, the gas sub – sector of the industry signifies an enormous potential for not just the operational activities of the government and our forex earnings, but for boosting further the GDP growth and infrastructural development of our domestic economy.
This is because the segment undergirds the functioning of our power ( electricity generation ) supply industry and also the development of the Liquefied Petroleum Gas (LPG) processing sector, as well as providing strategic support to industries that utilize gas as feedstock and gas – based
Globally, Nigeria is the 6th largest producer of liquefied petroleum gas (LPG) and the second largest on the African continent. Despite this, the country has the lowest LPG utilization per capita in Africa though potential demand exists of 1.5 million metric tonnes per annum.
Huge proven gas reserves portend opportunities to exploit diverse investment opportunities across the spectrum of the sector. Furthermore, Nigeria’s reserve production ratio of 55.7 years is above the global average.
Nigeria earned about N68.957 billion from lifting Liquefied Petroleum Gas, LPG, for both export and domestic consumption, according to the NNPC market research. Currently, national consumption is estimated at 40 per cent
or 270 , 000 tonnes. This is low when compared with the production or output
of 950,000 tonnes of LPG earmarked for domestic utilization in recent years.
This translates to 1.9 kilogram per capita, whereas the West African regional average is 3.5 kilograms.
Until recently, oil and gas operations resulted in the flaring of most produced gas. In order to reduce economical and environmental damage, Homeland Gas has initiated the (LPG – NGL) gas utilization project.
The LPG and other salable gases are the greatest approaches to marketing global yield of products such as(C1+ – C10+) product specifications and related derivative is to employ a tested organization in global market efforts.
This is to ensure and almost guarantee the effective use of market penetration strategies.
Therefore, Homeland Gas Company Nig. Ltd; has entered into an agreement in principal with a foremost international marketing organization with very strong and proven experience in the marketing of gas products and very reliable expertise in gas market development.