The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM),has cautioned Nigerians over panic buying of cooking gas as a result of the Force Majeure declared by Nigeria Liquefied Natural Gas Limited (NLNG).
Its President, Mr Oladapo Olatunbosun,made the appeal in a statement on the heels of NLNG’s declaration of force majeure on its gas facility due to flood last Monday.
In a statement,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; NLNG has not shut down its production facility in Bonny as rumoured.
He disclosed that NLNG on Thursday, 20th October, 2022 had shipped a cargo of LPG for the domestic market.
He said that the dedicated vessel for shipment of LPG from the NLNG Plant in Bonny, “Alfred Temile”, arrived in Lagos last 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.
The President 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 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 advocated the need for urgent intervention by critical stakeholders to grow the industry and for more investment to meet demand and crash the price.
The General Manager, External Relations and Sustainable Development, NLNG, Mr Andy Odeh,had 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.
He also said 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”