As a result of the force majeure that was declared by Nigeria Liquefied Natural Gas Limited (NLNG), the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has issued a warning to the people of Nigeria regarding the rush in buying of Liquefied Petroleum Gas (LPG), which is more commonly known as cooking gas. Oladapo Olatunbosun, the company’s president, sounded a note of caution in a statement made recently in the wake of the announcement that was made.
Olatunbosun emphasized that consumers do not need to worry about a possible shortage of the product on the basis of the force majeure, considering that the NLNG had made clear that its plant is in operation but with a limited capacity due to reduced gas supply from a few of its upstream gas suppliers, and added that none of its resources on Bonny Island, or within any of its host communities are impacted by the flood.
Flood affects upstream gas suppliers’ production facilities.
This declaration of force majeure is the result of a similar notification being issued by upstream gas suppliers due to the impact that flooding has had on their production facilities. The president affirmed once again that “Based on information reaching the Association, NLNG has not shut down its production facility in Bonny as rumored.” In addition to that, he stated that the NLNG had sent a shipment of LPG destined for the domestic market on Thursday, the 20th of October 2022.
Speaking further, he explained that the ‘Alfred Temile,’ a ship specifically built to transport LPG from the NLNG Plant in Bonny, arrived in Lagos on Thursday to begin discharging. There has been no interruption in NLNG’s LPG delivery to customers, as the public should know. He then advised Nigerians to refrain from conveying the impression that there is a lack of the product, which could lead to a price increase as the country is already in rough times with the Russian/Ukrainian war producing disruption in the markets and scarcity.
NLNG promised to continue production based on the feed gas.
The President of the Association stated that NLNG had given the association an assurance that it would continue to produce LPG based on the feed gas that it receives from its gas suppliers, and he added that production was expected to pick up when the flood subsided. However, he warned those in the middle of the value chain not to leverage the power of the panic that has spread throughout the market as a direct result of the flood, which has also made it more difficult to distribute manufacturing around the country.
Andy Odeh, NLNG’s General Manager of External Relations and Sustainable Development, previously issued a statement urging Nigerians not to fill their gas cylinders in a panic due to the abundance of LPG in the market. According to Odeh, the LPG supply is unaffected by the recent flooding or the announced force majeure. NLNG is the sole provider for the domestic market, which it serves exclusively, and is responsible for 40 percent of the gas supply in the domestic market. Odeh went on to say that the company’s plant was running at a lower capacity because of a decrease in gas supplies from some of its upstream gas suppliers.
Association aims to promote the use of LP Gas at an affordable cost.
The main goal of the association is to propagate the use of LP Gas in Nigeria at prices that people can afford. It also wants to protect the interests of the LP Gas industry and the Nigerian economy as a whole by advocating for public policy, creating and facilitating commercial and industrial opportunities, offering business development services, and making sure the highest standards of operational and business ethics are followed. Therefore, the president advocated for the immediate involvement of the stakeholders in order to expand the industry and for increased investment to both meet the demand and bring the price down.
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NALPGAM: Website
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I understand the plight of the gas marketers. They don’t want their customers to leave them and stop patronizing them. So they are imploring them not to panic buy. The flood has actually contributed to delay in supply of gas.
In a nation like ours when there is a rumor of any kind, it will better to here from the source before taking action. Panicking over every issues is dangerous. It will be proper to confirm before taking discussions.
Following a unreliable information, carrying rumor around, reliable information should be confirm before taking any rush step and been panicked. It is confirm now that there will be available of gas to distribute not to be rushing and buy it
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I suggest the use of LP Gas at an affordable cost would be good because it aims at expanding the industry, investment to both meet the demand and bring the price of gas down.
Now its for us to be patience till the gas will be disbursed and made available in bulk so as to not buy in high price.
Since we’ve heard from the horse’s mouth, panic purchase should reduce. Propagating the use of LP Gas in Nigeria at prices that people can afford is a good one.
Panic buying has made some ran into sever debt. It is always advisable to confirm any news on the social media or which every medium you received it before taking action.
We are out panicking. government should just do the needful. the price is affecting the masses
Panic purchase of crude oil products has been in existence from ages and it normally lead to bad incident because anything can happen from keeping the products in the residencial environment
Consumers do not need to worry about a possible shortage of the product on the basis of the force majeure, considering that the NLNG had made clear that its plant is in operation but with a limited capacity due to reduced gas supply from a few of its upstream gas suppliers.
It is unfortunate that most people would have bought large amount of cooking gas at exorbitant amount of money for keep not knowing that the news they heard was not true. It is advisable to verify any news before taking decisions.
In light of the recent announcement that was made, it is encouraging to see that the president of the company issued a statement in which he urged readers to proceed with extreme caution.
The consumers do not have any need to be concerned about the possibility of a scarcity of the goods as a result of the force majeure.
the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has warned Nigerians not to rush to buy cooking gas (LPG).
consumers do not have any need to be concerned about the possibility of a scarcity of the goods as a result of the force majeure.
The Newfoundland and Labrador Natural Gas Company (NLNG) had made it abundantly apparent that its plant is operational, albeit at a reduced capacity, as a direct result of reduced gas supply from a handful of its upstream gas sources.
People in Nigeria shouldn’t give the impression that there is a shortage of the goods because there is plenty of it.
Upstream gas suppliers have also declared force majeure due to the effects of floods on their production facilities, prompting this statement.
Nigerians were asked to avoid giving the appearance that there is a scarcity of the commodity, as this could result in an increase in demand and consequently the price.
The country is already going through a difficult time due to the conflict between Russia and Ukraine, which is causing disturbance in the markets and scarcity; therefore, we are hopeful that the conflict would finish soon.
those in the center of the value chain not to take advantage of the widespread fear in the market that the flood has caused, which has made it more difficult to disperse production to different regions of the country.