Local liquefied petroleum gas (LPG) production at Cameroon’s Bipaga facility helped reduce the country’s fuel import bill by more than US$25 million in 2023, easing pressure on foreign exchange reserves as the region faces mounting external constraints, official data showed.
According to the 2023 annual report of the National Hydrocarbons Corporation (SNH), reviewed by Business in Cameroon, volumes processed at the Bipaga gas centre in southern Cameroon made it possible to avoid LPG imports worth US$25.6 million, equivalent to about US$23 million in foreign currency outflows.
The contribution comes as the Central African subregion grapples with declining external buffers. The Bank of Central African States (BEAC) has warned of a gradual erosion of foreign exchange reserves across the Central African Economic and Monetary Community (CEMAC) since 2023, driven by high import bills and weaker export receipts.
Beyond easing the balance of payments, the ramp-up of Bipaga also delivered savings for public finances. The SNH report shows that domestic LPG output generated subsidy savings of about US$3.7 million in 2023, as locally produced gas reduced the need for costlier imported supplies subsidised by the state.
These gains were supported by strong operational performance at the facility. Bipaga recorded an availability rate of 98.41 percent during the year, with production halted for only one week for preventive maintenance, according to SNH.
In volume terms, the facility delivered 34,699 tonnes of LPG in 2023, up from 28,677 tonnes the previous year, representing growth of nearly 21 percent. This marked the site’s second-best performance since it began operations in 2018.
SNH attributed the increase to improvements in gas processing linked to output from new wells, allowing higher volumes to be treated without major operational incidents.
Despite the progress, Cameroon’s LPG market remains heavily dependent on imports. Imported gas accounted for more than 83 percent of total supply in 2023, underscoring the country’s continued exposure to international energy prices.
Total LPG supply reached 208,083 tonnes in 2023, up 14.1 percent from a year earlier. Bipaga covered just 16.68 percent of domestic needs, or around 20.5 percent when volumes exported to neighbouring Chad are excluded, the report said.
Domestic consumption rose to 170,220 tonnes, an increase of 7.3 percent year on year, reflecting strong and steadily growing demand for cooking gas in households and businesses. Consumption growth continues to outpace local production capacity, reinforcing the structural reliance on imports.
The gap between total supply and domestic consumption reflects exports of 37,863 tonnes to regional markets, highlighting Cameroon’s role as a supplier to neighbouring countries despite its own supply constraints.
While rising local output has helped cushion the import bill, most LPG consumed in Cameroon still comes from abroad, leaving the economy vulnerable to price volatility and sustained pressure on foreign currency reserves.
SNH said the challenge now is to consolidate operational gains at Bipaga while accelerating the development and monetisation of domestic gas resources, a strategy seen as key to improving energy security, reducing subsidies and strengthening the country’s external position.
Cameroon, a CEMAC member that shares a common currency and central bank with five other countries, has identified domestic gas development as a pillar of its broader efforts to limit import dependence and preserve foreign exchange reserves amid a challenging regional economic environment.
