The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has cautioned Nigerians against panic buying of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas as a result of the Force Majeure declared by Nigeria Liquefied Natural Gas Limited (NLNG).
NALPGAM’s President Mr Oladapo Olatunbosun made the appeal in a statement against the backdrop of NLNG’s declaration of force majeure on its gas facility due to flooding.
Olatunbosun said that cooking gas consumers need not panic about a possible scarcity of the product as a result of the force majeure.
He reiterated that based on information reaching the association, the NLNG has not shut down its production facility in Bonny as rumoured and confirmed that NLNG as at last Thursday had shipped a cargo of LPG for the domestic market as the dedicated vessel for shipment of LPG from the NLNG Plant in Bonny, “Alfred Temile”, arrived in Lagos on Thursday to discharge product.
“The public should know that the supply of LPG from NLNG has not stopped; we should not give opportunity for further price hike due to speculated shortage of the product. We are already in hard times with the Russian/Ukraine war causing upset in the markets and the scarcity,” he advised.
Olatunbosun said that NLNG has assured the association that it will keep producing LPG based on the feed-gas it receives from its gas suppliers, adding that production was expected to pick up after the flood recedes.
He, however, cautioned middlemen in the value chain not to take advantage of the hysteria in the market as a result of the flood which has also hampered the distribution of the production across the nation. He called for urgent intervention by critical stakeholders to grow the industry and for more investment to meet demand and crash the price.
It would be recalled that the General Manager, External Relations and Sustainable Development, NLNG, Mr Andy Odeh in a statement urged Nigerians on the need not rush to fill their gas cylinders as there is enough quantity of LPG to satisfy the market.
Odeh said that the flooding or force majeure declared has no impact on LPG availability. The NLNG account for 40 per cent supply of gas in the domestic market and in recent times has been the sole supplier for the domestic market.
Odeh, further explained that the company’s plant was in operation at a limited capacity, due to reduced gas supply from some of its upstream gas suppliers.
“None of NLNG’s assets on Bonny Island or in any of its host communities are impacted by the flood. The Force Majeure is as a consequence of a similar notice by upstream gas suppliers due to the impact of flood in their production facilities.” NLNG continues to monitor the situation with upstream gas suppliers and is evaluating the impact of the flood on its business,” he said, assuring that the firm was working with all critical stakeholders to mitigate the impact on product deliveries,” an earlier statement from the NLNG said.
Credit: Economic Confidential
