Business
Force majeure: Cooking gas marketers warn Nigerians against panic buying
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has cautioned Nigerians against panic buying of Liquefied Petroleum Gas (LPG), cooking gas, as a result of the force majeure declared by Nigeria Liquefied Natural Gas Ltd. (NLNG).
Its president, Mr Oladapo Olatunbosun, made the appeal in a statement on Saturday in Lagos, against the backdrop of NLNG’s declaration of force majeure on its gas facility due to flooding on Monday.
Olatunbosun said cooking gas consumers should not panic over a possible scarcity of the product as a result of the force majeure.
National Daily reports that force majeure is a common clause in contracts, which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties occurs.
The circumstances include war, strike, riot, crime, epidemic or sudden legal changes, which prevent one or both parties from fulfilling their obligations under the contract.
The president reiterated that, “based on information reaching the association; NLNG has not shut down its production facility in Bonny as rumoured.”
He confirmed that NLNG on Oct. 20 had shipped a cargo of LPG for the domestic market.
He said the dedicated vessel for shipment of LPG from the NLNG Plant in Bonny, “Alfred Temile,” arrived in Lagos on Oct. 20 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.
He said NLNG had assured the association that it would keep producing LPG based on the feed-gas it received from its gas suppliers, adding that production was expected to pick up after the flood receded.
He, however, cautioned middlemen in the value chain not to take advantage of the hysteria in the market as a result of the flood, which had also hampered the distribution of the production across the nation.
He called for urgent intervention by critical stakeholders to grow the industry and for more investment to meet demand and crash the price.
Similarly, the General Manager, External Relations and Sustainable Development, NLNG, Mr Andy Odeh, in a statement urged Nigerians on the need not rush to fill their gas cylinders as there was enough quantity of LPG to satisfy the market.
Odeh said the flooding or force majeure declared had no impact on availability of LPG.
The NLNG accounts 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 on 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.
He assured that the firm was working with all critical stakeholders to mitigate the impact on product deliveries.
NAN also reports that price of cooking gas across the Lagos metropolis is relatively stable as cooking gas still maintains its price range of between N9, 400 and N11, 000 per 12.5kg cylinder.