The Nigerian National Petroleum
Corporation (NNPC) is set to implement effective commercial framework
that would halt the export of propane and butane which are major
components in the production of Liquefied Petroleum Gas (LPG), also
known as cooking gas.

In a press release by its Group General
Manager, Group Public Affairs Division, Ndu Ughamadu, on Thursday,
January 10, 2019, the Corporation explained that the move to stop the
export of propane and butane which is anchored by the Crude Oil
Marketing Division of the Corporation would enable the NNPC boost supply
of LPG to the domestic market thereby leading to a natural downward
slide in the price of the product in the country. 

The NNPC spokesman quoted the Group
General Manager, Crude Oil Marketing Division (COMD) of the Corporation,
Mallam Mele Kyari, as saying: “Currently some of our butane and propane
entitlements are exported largely due to lack of vessels to make sure
that these things come into the domestic markets and the absence of a
commercial framework. What we are going to do is to make sure we put the
right commercial framework in place so that those exports are converted
into domestic consumption”. 

Mallam Kyari who disclosed this at a strategy
session said the Division was working in concert with stakeholders to
create the enabling environment for in-country production of LPG and
cessation of export of the country’s equity butane and propane
entitlements due to absence of in-country vessels for transport and
other considerations.

He said that the goal of the Division in 2019
is to complete the automation process in the marketing and sale of
Nigerian crude oil grades which teed-off in 2017, noting that all hands
must be on deck to achieve 100 percent, end-to-end conclusion of the
process.