• Local LPG output avoided $25.6m in imports, easing forex outflows

• Treasury saved CFA2.24bn on LPG subsidies as production rose

• Imports still supply more than 83% of Cameroon’s LPG market

In 2023, local liquefied petroleum gas (LPG) production at the Bipaga site in southern Cameroon helped curb the country’s external bill. According to the annual report of the National Hydrocarbons Corporation (SNH) reviewed by Investir au Cameroun, output from the facility avoided $25.596 million in imports, equivalent to about CFA14 billion in foreign currency outflows. The contribution comes as the sub-region faces mounting pressure on foreign exchange reserves: since 2023, the Bank of Central African States (BEAC) has reported a gradual erosion of reserves across the Central African Economic and Monetary Community (CEMAC).

LPG subsidy: CFA2.24bn in savings for the Treasury

The ramp-up of Bipaga has also eased public finances. According to the same report, local production generated CFA2.236 billion in savings on the LPG subsidy. These gains were driven by the high availability of the facilities, with an operational rate of 98.41% over the year, as operations were halted for only one week for preventive maintenance.

In detail, Bipaga delivered 34,699 tons of LPG in 2023, up from 28,677 tons a year earlier, an increase of 20.99%. This was the site’s second-best performance since operations began in 2018. SNH attributes the result to improvements in the gas processing of output from new wells, which boosted volumes without major incidents.

Market still 83.32% import-dependent despite rising local output

Cameroon’s LPG market remains dominated by imports, which account for 83.32% of supply. Out of total supply of 208,083 tons, up 14.14%, Bipaga covered only 16.68% of needs, or 20.47% when excluding volumes exported to Chad. Domestic consumption reached 170,220 tons, up 7.29%, confirming strong demand that still far exceeds local production capacity.

The gap between total supply and consumption is partly explained by 37,863 tons exported to the sub-region, where Cameroon remains an active supplier. Despite progress at Bipaga, most LPG consumed in the country continues to be imported, exposing Cameroon to international price swings and persistent pressure on foreign exchange. The trajectory of Bipaga nonetheless points to rising capacity. For SNH, the challenge is to consolidate operational gains and accelerate the development of local gas valorization.

Amina Malloum, Business in Cameroon