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The Scarcity of Liquefied Petroleum Gas LPG, known as cooking gas is likely to abate as the Nigerian Liquefied Natural Gas, NLNG vessel discharges product at Lagos jetty, for distribution.
The company in a statement made available to aaOriental News Nigeria, states that the “NLNG’s LPG vessel successfully discharged 13,000 tonnes of LPG to Lagos jetty over the weekend. Vessel is scheduled to return to NLNG’s facility in Bonny to re load. NLNG continues its efforts to ensure adequate supply and price stability to the market.”
Also in a deliberate move to stabilse the LPG market, the Nigeria LNG Limited has approved an increase in domestic supply from 250,000 metric tonnes to 350,000 metric tonnes annually.
However, a dedicated LPG vessel had been unable to discharge the product at the Apapa port since December 29, 2016 due to jetty unavailability, thus resulting in temporary product shortage in the market.
The price of cooking gas, had soared to N5,000 per 12.5kg from N3,200 in December as a result of the hitches.
The NLNG blamed delays in vessel discharges at the receiving facilities in Apapa, Lagos to have led to a temporary supply disruption over the last two to three weeks.
According to the General Manager, External Relations, NLNG, Kudo Eresia-Eke, Nigeria LNG’s price is based on an international price index plus 50 per cent of the shipping cost of delivering the product to receiving facilities in Apapa-Lagos.
It said, “That price is invoiced in naira at the prevailing official interbank exchange rates, contrary to erroneous assertions made in parts of the media.
“The reality of this is that although the LPG is produced and consumed locally, the product, like crude oil, is an internationally traded commodity with an international price benchmark, open to global demand and supply pressures.
“The NLNG, however, softens the impact of price variations by continuing to subsidise the cost of transporting about 40 percent of total domestic market share, which it supplies from its production facility on Bonny Island.”
The NLNG said it would continue to work with stakeholders, including off-takers and terminal operators, to eliminate bottlenecks and improve operational efficiency to ensure product availability and help correct market price distortions.
It said, “We are also engaged with other public and private stakeholders along the domestic market value chain to stimulate price stability and growth.
“The NLNG said it would remain fully committed to the goals of ensuring the LPG supply availability, reliability and affordability, which are critical for the development and growth of the domestic LPG market.”