A major supplier of cooking gas, the Nigerian Liquefied Natural Gas (NLNG) has blamed marketers for their inability to offtake the full 450,000MTPA of Liquefied Petroleum Gas (LPG) allocated to the Nigerian market.
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The marketing manager, NLNG, Mr Austin Ogbogbo, who made the clarification during an interactive session with journalists in Lagos, blamed the situation on dearth of infrastructure and other factors as major causes of the shortage.
Ogbogbo noted that NLNG was not responsible for the supply shortfall of LPG, also known as cooking gas and the consequent price hike across the country. The company also corrected the insinuation that NLNG produces 22 million tonnes per annum (MTPA) of LPG or cooking gas.
He said NLNG is primarily an export company that produces 22 MTPA of liquefied natural gas (LNG) and five MTPA of natural gas liquids (NGLs), and that it is also erroneous to say that NLNG contributes to the supply shortfall of cooking gas in Nigeria and consequent price hike.
The price of LPG in the domestic market is dependent on several market factors, including the forces of demand and supply, he said. On the supply side, NLNG plays a pivotal role in the Nigerian domestic LPG market in line with the commitment it made to help deepen the market.
Recently, the Company increased the volume of its annual commitment to the market from 350,000 to 450,000 metric tons, which is about 100 per cent of its Butane production. Butane gas is less volatile and is, therefore, suitable for cooking.
Recall the Independent Petroleum Marketers Association had said that the major cause of the rising cost of cooking gas was lack of adequate supply.
The marketers claimed that foreign investors underestimated demand in the Nigerian market resulting in marketers venturing into importation of the product.
They advocated that the government should let NLNG supply more gas to the market to reduce the costs.
Reports from consumers revealed that the cost of refilling a 12.5-kilogramme cylinder of LPG had risen to as high as N7000 in some states.
The marketers had also urged the government to remove cooking gas from the list of commodities subject to the payment of value added tax.
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