Local liquefied petroleum gas production at the Bipaga facility in southern Cameroon helped ease the country’s external bill in 2023. According to the annual report of the National Hydrocarbons Corporation reviewed by Business in Cameroon, volumes processed at the site made it possible to avoid $25.596 million in LPG imports, equivalent to about CFA14 billion in foreign currency outflows. The contribution is closely watched as the subregion faces pressure on foreign exchange reserves, with the Bank of Central African States noting a gradual erosion of Cemac reserves since 2023.
The ramp-up of Bipaga also supported public finances. The same report shows that local production generated CFA2.236 billion in savings on the LPG subsidy. These gains were driven by the high availability of the facilities, which reached 98.41% over the year, with operations halted for just one week for preventive maintenance.
In detail, Bipaga delivered 34,699 tons of LPG in 2023, up from 28,677 tons a year earlier, representing growth of 20.99%. This was the site’s second-best performance since it started operations in 2018. SNH attributes the increase to improvements in the gas processing of output from new wells, which allowed higher volumes without major incidents.
Despite the progress, Cameroon’s LPG market remains largely import-dependent. Imports accounted for 83.32% of supply in 2023. Out of total supply of 208,083 tons, up 14.14%, Bipaga covered just 16.68% of domestic needs, or 20.47% when excluding volumes exported to Chad. Domestic consumption reached 170,220 tons, an increase of 7.29%, confirming strong demand that continues to exceed local production capacity.
The gap between total supply and domestic consumption reflects exports of 37,863 tons to neighboring markets, where Cameroon remains an active supplier. While Bipaga’s contribution is rising, most LPG consumed in the country still comes from abroad, leaving Cameroon exposed to international price swings and ongoing pressure on foreign currency reserves. SNH says the challenge now is to consolidate operational gains at Bipaga and accelerate the monetization of local gas resources.
Amina Malloum
