The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has cautioned Nigerian cooking gas consumers against panic buying the product, insisting the Nigerian LNG Limited has promised to sustain significant supply despite the partial Force Majeure declared on shipments from its Bonny Island liquefied natural gas facility after supplies were cut off by flooding.
Oladapo Olatunbosun, President of NALPGAM, in a statement released on Saturday, obtained by EnergyDay, said based on information reaching the association, NLNG has not shut down its production facility in Bonny as rumoured.
According to him, despite the sustained efforts of supply by NLNG, some middlemen are attempting to use the media to push for the increase of prices of cooking gas in Nigeria, by creating unnecessary panic to make ridiculous gains.
He confirmed that NLNG, as recently as Thursday, October 20, 2022, shipped a cargo of LPG into the domestic market.
He reiterated that the dedicated vessel for shipment of LPG from the NLNG Plant in Bonny, Alfred Temile, arrived in Lagos on Thursday to discharge the product to the terminals in the state.
NALPGAM President said, “The public should note that the supply of cooking gas 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.”
Mr. Olatunbosun further stated that the association has been assured by NLNG that the company 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.
NALPGAM President also cautioned middlemen( Terminal owners/off-takers) in the LPG 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 product across the nation.
The NALPGAM, however, called for urgent intervention of critical stakeholders to grow the industry, by paving the way for more investment to meet growing local cooking gas demand and crash the price.
The Nigeria LNG, had earlier in a statement corroborating the NALPGAM President’s statement, revealed that the public has been misinformed into panic buying of cooking gas, over fear of price hike on the backdrop of its Force Majeure declaration,
In clarifying its earlier report on the force majeure, NLNG noted that its plant is in operation, although, at a limited capacity, due to reduced gas supply from some of its upstream gas suppliers.
Nigeria LNG Limited said, “None of NLNG’s assets on Bonny Island or in any of its host communities are impacted by the flood.
“The Force Majeure is a consequence of a similar notice by Upstream Gas Suppliers due to the impact of flood in their production facilities.
“NLNG is working with all critical stakeholders on mitigating the impact on product deliveries.
NLNG continues to supply LPG to the domestic market for now from the limited production.
The largest producer of LPG to the domestic market said that it would continue to monitor the situation with upstream gas suppliers, emphasising that it will be evaluating the impact of the flood on its business.