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NLNG: How Cooking Gas Offtakers Greed Fuel Scarcity, High Prices

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It has come to light that profiteering by major cooking gas offtakers accounted for the recent scarcity and skyrocketing of prices of Liquefied Petroleum Gas (LNG) in Nigeria.

The Nigeria LNG Limited (NLNG), has disclosed that it sold LNG at N800 per kilogramme to the major offtakers, who turned round to sell to Nigerians at N2,400 per kg, marking up the product by N1,600 during the recent nationwide scarcity.

It said that some of the offtakers were hoarding product at terminals and creating artificial scarcity, a practice that pushed prices far above regulatory benchmarks and inflicted hardship on households across the country.

These facts were shared by the Managing Director and Chief Executive Officer, Adeleye Falade, at the NLNG Facts & Figures Presentation in Lagos.

“What we found out is that a number of people who take products, they will put it in their terminal, and they are part of those that have created the artificial scarcity that has led to the price increase. When the product was being sold at N2,400 per kg in the market, guess how much they were lifting it from us? It was between N800 and N900 per kg,” Falade stated.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had recommended that after transportation costs, retail prices should not exceed N1,000 to N1,200 per kg.

“So there’s also some distortion that happened on the sales side, which I know the regulators are working on right now to get control of it,” Falade added.

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The NLNG supplies LPG to the Nigerian market through its vessel, Alfred Temile. More than 15 terminal owners offtake the product as middlemen before selling in bulk to gas plant operators and independent petroleum marketers.

The hoarding at terminal level, according to NLNG’s assessment by one of the big four consulting firms, meant product was not getting to retailers fast enough, tightening supply and inflating prices.

In response, NLNG said it has changed its allocation strategy. “So preference for us is not for those kinds of people, but those that can supply directly to the retailers,” Falade said. The new ranked order prioritises offtakers with storage capacity and a proven direct-to-retail network.

Despite the scarcity at retail level, Falade said NLNG did not have a problem around infrastructure or capability to move its product to the market.

“That’s not a limitation for us… We sell all of our products. We actually have more demand than we’re able to sell. Our challenge was not that people were not able to take the product. Every cooking gas that we made, we had buyers,” he said.

He acknowledged industry-wide infrastructure deficits but said they have not reached the point of stranding NLNG’s output. “There is an infrastructure deficit, but it hasn’t played itself to the point where we become stranded with the product that we have made. No, we haven’t seen it to that extent.”

Annual LPG consumption in Nigeria has grown to 1.8 million tons in 2026 from 1.5 million tons in 2023, underscoring rising dependence on cooking gas as households shift away from firewood and kerosene.

To ease pressure on prices, NLNG said the completion of Train 7 will be the immediate game-changer. The $5 billion project is progressing at Bonny Island in Rivers State with about 16,000 people working daily.

The completion of the Train 7 is going to increase the company’s LNG capacity by 35 per centIt, taking it from 22 MTPA to 30 MTPA. Aside from LNG, the project will also increase NLNG’s LPG production by 50 percent.

Last year NLNG supplied 500,000 tons of LPG to the domestic market. With Train 7 on stream, an additional 250,000 tons will be added annually, taking the total annual supply to 750,000 tons,” the CEO said.

The extra volume is expected to improve availability and moderate the price volatility that has plagued the market in recent months.

Falade said NMDPRA is already working to rein in the LPG market distortion with introduction of NLNG’s ranked offtaker system that is also designed to cut out middlemen who warehouse product instead of distributing it.

Beyond LPG, NLNG said it is fast-tracking a 1.1 MTPA domestic LNG supply project targeted at industries and transport.

The company had in June 2021 announced its plan to begin supplying LNG to the domestic market with an initial 1.1 million metric tons from July 2022. The company went ahead to sign an offtake agreement with three companies including However, that project has been stalled.

Falade said the project remained on course. “We do have a project already working around the domestic LNG supply… It hasn’t changed from the 1.1 MTPA that was declared at that point in time. We are behind on schedule, but we’re still working on it,” Falade said.

Energy

U.S. to Tweak LNG Safety Rules for Foreign Markets

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With a view to accelerating infrastructure development and reducing operating costs, the U.S. Department of Transportation is contemplating a new set of safety regulations for liquefied natural gas facilities.

This is coming as American exporters prepare for another major expansion in global natural gas markets.

It was gathered that the proposal, issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA), would modernize federal LNG safety requirements by incorporating standards developed by the National Fire Protection Association.

READ ALSO: Investors Embrace DPRP IPO Globally, 120 Countries, 54 African Nations

The changes are to address facility location, engineering, construction, operations, and maintenance, with greater flexibility to adopt newer technologies.

Transportation Secretary, Sean Duffy estimates that the updated framework could save LNG operators approximately $100 million annually while maintaining safety protections. The projected savings are an agency estimate, and the proposal has not yet become a final regulation.

The initiative comes as the United States strengthens its position as the world’s largest LNG exporter. American export capacity is expected to increase by approximately 100 million metric tons annually by the end of the decade, supported by projects already under development and additional planned investments.

Global LNG demand has also become more sensitive to geopolitical disruptions. Interruptions to Middle Eastern gas shipments associated with the conflict involving Iran have encouraged international buyers to evaluate alternative suppliers and diversify long-term procurement arrangements.

U.S. LNG developers have responded with additional investment commitments. Projects representing more than 50 million metric tons of annual capacity have reached final investment decisions since the beginning of 2025.

Major exporters, including Cheniere Energy and Venture Global, are pursuing additional development opportunities as federal policy places greater emphasis on expanding domestic energy infrastructure.

However, regulatory modernization does not eliminate the financial or operational challenges associated with LNG construction.

Developers must still secure the Federal Energy Regulatory Commission (FERC) approvals, complete environmental reviews, arrange financing, and address potential legal challenges. Pipeline connections, specialized equipment availability, construction costs, and long-term customer contracts also influence project schedules.

Delfin LNG, which is developing a floating export facility, illustrates the importance of infrastructure safety approvals. Its associated pipeline has not received publicly confirmed PHMSA clearance to resume operations following an explosion earlier this year.

Separately, FERC has proposed a streamlined authorization framework for certain modifications and expansions at existing LNG facilities, including activities that could qualify for automatic approval or shortened review periods.

For energy investors, the combined regulatory initiatives could improve development visibility and reduce some costs, although their financial impact will depend on final requirements and individual project circumstances.

Additional LNG export capacity could support demand for U.S. natural gas production, particularly from major producing regions connected to Gulf Coast terminals.

Midstream operators, engineering companies, compression equipment manufacturers, and construction contractors could also benefit from continued infrastructure investment.

At the same time, greater export demand may increase domestic natural gas price sensitivity to international markets, creating different implications for producers, utilities, and industrial consumers.

Investors will be monitoring the final PHMSA regulations, FERC permitting developments, LNG project financing decisions, and the pace at which proposed export capacity enters commercial service.

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Energy

NALPGAM Preaches Innovation, Safety to LPG Operators

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GAS: New Temile/Hyundai LPG Vessel to bring down high cost of cooking gas in Nigeria-NCDMB

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has urged operators in Nigeria’s liquefied petroleum gas (LPG) industry to strengthen safety standards, improve regulatory compliance and adopt digital technologies to reduce operational losses and drive business growth.

The association said improved operational practices would help protect investments, enhance efficiency, build consumer confidence and support the sustainable expansion of C.

The call followed its 2026 webinar, themed “Downstream LPG Operational Excellence and Compliance,” which brought together industry operators, regulators and other stakeholders to discuss safety risks, market volatility, operational inefficiencies and regulatory requirements in the downstream LPG sector.

Speaking at the event, NALPGAM National President, Edu Inyang, said the industry’s long-term growth would depend on more than increased consumption and supply volumes, stressing the need to embed safety and operational efficiency in everyday business practices.

“The future of Nigeria’s LPG industry cannot be achieved by increasing volumes alone. We must grow safely, responsibly, efficiently and sustainably. Safety is not an occasional campaign; it must become a continuous industry culture,” he said.

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A major outcome of the webinar was a proposal for a NALPGAM Standard of Operational Excellence, anchored on four principles: safe and well-maintained facilities, competent and adequately trained operators, regulatory-compliant processes, and consumer protection.

Participants urged operators to integrate safety into routine operations, strengthen preventive maintenance and comply with licensing and incident-reporting requirements.

They also called for an end to unsafe practices, including unauthorised propane blending and illegal decanting, warning that such activities could expose businesses and consumers to avoidable risks.

Inyang said compliance should be viewed as a means of strengthening business performance rather than merely fulfilling regulatory obligations.

“Compliance is not merely a regulatory burden; it is a business advantage. Well-managed LPG operations reduce accidents, improve efficiency, protect investments and strengthen public confidence in our industry,” he said.

The webinar also highlighted the role of digital technologies in improving operational efficiency and accountability across the LPG value chain.

Participants identified smart filling systems, automated tank gauges, load cells, flow meters and vehicle-tracking systems as practical tools for monitoring product movements, reducing losses and improving inventory management.

Wider adoption of these technologies, they said, could help operators strengthen operational controls, minimise discrepancies and improve the reliability of LPG distribution.

The discussions come as Nigeria seeks to expand LPG consumption to approximately five million tonnes annually by 2030, a target that will require increased investment, stronger distribution networks and wider consumer access.

Stakeholders called for greater industry participation in the Decade of Gas LPG penetration programme, alongside stronger collaboration to expand access, improve cylinder traceability and promote certified local manufacturing.

The NALPGAM also urged regulators and programme coordinators to involve its members more actively in implementing LPG penetration and cylinder recirculation initiatives.

According to the association, its members’ nationwide presence and proximity to consumers could help improve the reach and effectiveness of programmes designed to increase LPG adoption.

Reiterating the association’s position, Inyang said the industry must establish clear operational standards that protect consumers while supporting efficient and sustainable business practices.

“Our aspiration is clear: every LPG facility must be safe and properly maintained, every operator competent and adequately trained, every process compliant, and every customer protected. This is the standard of operational excellence we must collectively pursue,” he said.

The NALPGAM reaffirmed its commitment to working with government agencies, regulators and industry stakeholders to develop a safer, more efficient and competitive LPG market.

The association maintained that embedding safety, strengthening compliance and deploying appropriate technologies would be critical to improving operational performance and supporting the long-term growth of Nigeria’s LPG industry.

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Energy

Fears of Fresh US Strikes on Iran Fuels Crude Price Surge

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OPEC Appoints Next Secretary General, Effective August 2022

Fears of renewed US military strikes on Iran and escalating threats to energy infrastructure across the Middle East heightened concerns about global crude supplies have pushed-up crude oil prices in the global market.

These factors pushed crude oil prices over $117 a barrel in the global market, even as oil theft and pipeline losses in Nigeria fell by 82.9 percent in five years, from 102,900 barrels per day (bpd) in 2021 to 17,600 bpd in the first seven months of 2026, amid fresh concerns about further increases in lost volumes after years of decline.

Nigeria’s oil benchmark, Brent crude, climbed by about 3.5 percent to cross $117 a barrel during trading before easing to just above $116, still up approximately 2.7 percent.

READ ALSO: Navy Uncovers 132,000 Litres of Stolen Crude Oil in Bonny

The latest rally followed reports that Washington was considering fresh military strikes against Iran after the November 3 midterm elections, raising concerns that the conflict, now in its eighth month, could escalate further rather than move towards a diplomatic resolution.

Iran had threatened to attack oil facilities, undersea cables, data centres and artificial intelligence infrastructure across the Gulf if the United States and Israel launched a new offensive against the country.

Recall that Brent crude traded at about $72 a barrel in February, before the war began, but surged to about $126 a barrel by the end of April as the conflict intensified and concerns mounted over supply security.

Tensions rose again during the week following claims by Iran’s Islamic Revolutionary Guards Corps (IRGC) that it struck four commercial vessels in the Strait of Hormuz on Wednesday.

The US ordered some diplomats and family members of American government employees to leave Saudi Arabia, which had faced continued attacks by Houthi rebels operating from Yemen.

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