FG to audit LPG market as import hits 26,700MT amid export by Chevron

Chevron

Three years after appointing a special Minister for Petroleum (Gas) and declaring a decade of gas, Nigeria’s liquefied petroleum gas (LPG) market has come under renewed strain as imports surged to a record 26,700 metric tonnes within the first 19 days of June.

This is even as Chevron Nigeria Limited (CNL), a major producer, continues to export all its output, worsening domestic supply shortages.

With two cargoes meant for export stopped last year, there are indications that regulatory lapses, especially power delineation between the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), are inflicting hardship on consumers and returning Nigerians to charcoal and worsening deforestation.

Data presented yesterday in Abuja by NMDPRA at an emergency stakeholders’ meeting showed a market increasingly dependent on imports to plug structural supply gaps, necessitating a massive import permit to inject 165,000 metric tons (MT) of LPG in the third quarter of 2026.

The Authority Chief Executive of NMDPRA, Rabiu Umar, told industry players that the import spike reflected an urgent intervention to stabilise supply, following months of declining import volumes and inconsistent domestic availability.

NMDPRA said it would engage relevant agencies to facilitate access to foreign exchange for critical LPG imports and deploy technology-enabled product tracking systems to curb diversion and improve market integrity amidst the issuance of more import permits.

According to the regulator, Nigeria recorded a total LPG supply of 95,769.26 metric tonnes between June 1 and 19, 2026, translating to an average daily supply of 5,040.49 metric tonnes, an improvement from 4,262 metric tonnes per day recorded in May.

A breakdown of the figures shows that domestic supply contributed 58,163.35 metric tonnes within the period, largely from the Nigeria LNG Limited (NLNG), which supplies 29.01 per cent of the market and other upstream producers. Imported volumes stood at 16,642.66 metric tonnes, with an additional 10,000 metric tonnes import expected before the first week in July, while additional supplies came from Dangote truck-outs (6,083 metric tonnes) and other processing plants (14,880.25 metric tonnes).

While imports have been near zero in the last one year, Umar said, despite the improved supply position, sufficiency levels only recently increased from 11 days to 22 days, showing the fragility of the supply chain.

A key concern raised at the meeting was the continued export of locally produced LPG, particularly by Chevron, which accounts for about 22.93 per cent of Nigeria’s LPG production but currently supplies none to the domestic market.

Industry data shows that NLNG leads production with a 29.01 per cent share, followed by Chevron, while other contributors include Dangote Refinery (16.26 per cent) and Seplat (13.63 per cent).

NMDPRA disclosed that a significant portion of Nigeria’s LPG production was still being exported, contributing to persistent supply deficits.

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