News

October 11, 2011

NLNG blames scarcity of gas on distributors

ABUJA—The Deputy Managing Director of Nigeria Liquefied Natural Gas, NLNG, Mr. Basheer  Koko, Monday told the Senate Committee on Gas that distributors are responsible for the scarcity of gas for domestic consumption.

Mr. Koko who appeared before the Senator Nkechi Nwaogu-led Committee yesterday in Abuja said that the company had 150,000 metric tonnes of liquefied gas for domestic consumption but that only 60,000 is being assessed by the distributors.

He said: “The issue of gas scarcity is not about the availability of gas. We have 150,000 metric tonnes of liquefied natural gas for domestic consumption but, the off- takers took only 60,000 metric tonnes. It is not a question of availability from us, it is about the distribution.”

Mr. Koko also told the committee that the Nig LNG has reduced gas flaring in the country by 48 percent following the production of 22 million metric tonnes of gas.

He informed the committee that the company is also planning to build two terminals in Port Harcourt and Calabar for distribution of gas.

Earlier, Senator Nwaogu had demanded for the records of all proceeds accrued to the Federal Government from the Nig LNG since it began operations till date.

She also lamented the scarcity of gas for domestic and industrial use and demanded for explanations from Mr. Koko on why Nigeria should lack adequate gas supply being the sixth largest producer of gas in the world.

In his response, Mr. Koko told the committee that NNPC which has 49 percent stake in the company will furnish them with the records of proceeds.