Mkpoikana Udoma
Port Harcourt — The Nigeria LNG Limited has attributed the surge in the price of domestic Liquefied Petroleum Gas in the country on market forces, such as increasing crude oil prices, exchange rates and the Panama Canal drought, which has led to vessel scarcity, thus impacting transport costs for imported LPG.
The gas firm has also dismissed the reports that a price hike by the company was responsible for the surge in the price of domestic cooking gas in the country which would metamorphose into scarcity, describing the reports as speculative and a misunderstanding of Nigeria’s market dynamics.
NLNG General Manager, External Relations and Sustainable Development, Mr. Andy Odeh, in a statement assured of the company’s commitment to ensuring the reliable supply of its LPG production to the domestic market at prices that are reflective of the market.
Odeh said NLNG has remained committed to delivering domestic LPG in the country by diversifying delivery points starting with Lagos in 2023, fostering competition among terminal owners and also reducing consumer supply chain costs.
According to the statement, efforts were ongoing to reach terminals in Warri and Calabar as soon as the challenges limiting safe delivery of volumes to these locations are cleared.
“The domestic LPG market, like any other, is subject to dynamic market forces and various external factors. Such factors as changes in exchange rates, and escalating price benchmarks mirroring crude oil prices, and the Panama Canal drought-induced vessel scarcity impacting transport costs especially for imported LPG, have had significant effect on energy prices in the recent times and could undoubtedly be some of the reasons for recent price hikes witnessed in the domestic market.
“NLNG maintains an unwavering commitment to ensuring the reliable supply of its LPG production to the domestic market at prices that are reflective of the market. The Company is collaborating with relevant industry stakeholders to achieve this objective and will remain focused on achieving its mission through this avenue among others.
“NLNG has been making defining contributions to the domestic LPG market, spurring the steady growth of the nation’s DLPG market volume from less than 50,000 metric tons of imported LPG in 2007 to over 1.3 million metric tons of both domestic and imported LPG today. NLNG currently delivers over 450,000 metric tons per annum of Butane, the main product in cooking gas and has embarked on domestic propane supply to further grow the market.
“The Company has committed its entire Butane and Propane production to the domestic market from 2023 and despite feed gas challenges, continues to supply LPG to the domestic market, accounting for approximately 40percent of the total market volume. Since the beginning of the year, NLNG has delivered over 380,000 metric tons of LPG using the Company’s dedicated LPG vessel,” Odeh said in the statement.
