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| Dizeani Allison Madueke, Petroleum Minister |
By: Ejiofor Alike
The marketers of Liquefied Petroleum Gas (LPG), popularly
called Cooking Gas, have called on the federal government to settle the dispute
between the Nigerian Maritime Administration and Safety Agency (NIMASA) and the
Nigeria Liquefied Natural Gas (NLNG) Limited, to prevent LPG from disappearing
from the Nigerian market.
The call stemmed from the marketers’ concern that the
blockade by NIMASA against the operation of the NLNG Limited, which solely
accounts for domestic supply of LPG in the country, has effectively stalled supply
of the product to the domestic market.
Former President Olusegun Obasanjo had in 2007 directed the
NLNG to set aside a portion of its LPG output for local consumption; following
the failure of the Warri and Port Harcourt Refineries to produce LPG to meet
the demand of the local market.
Based on this directive, the NLNG load out 150,000 Metric
Tonnes of LPG in vessels yearly from its Bonny Island plant in Rivers State to
Lagos, where about 10 companies appointed as off-takers lift the product in
vessels and sell to the local market.
But the newly-elected President of the Nigerian LP Gas
Association (NLPGA), Mr. Basil Ogbuanu, told THISDAY during the weekend, that
NLNG vessels no longer come to Lagos to discharge LPG as a result of the
blockade by NIMASA.
He disclosed that the companies, popularly referred to as
the Club of Offtakers, involved in lifting LPG from NLNG vessels in Lagos were
fast running out-of-stock of the product and called on the federal government
to ensure quick resolution of the dispute to save the Nigerian masses from
hardship.
“None of the off-takers has gas and 90 per cent of gas plant
owners in this country have no gas because NLNG vessels are no longer bringing
the product to Lagos. LPG is supposed to be for everybody in this country
because Nigeria has abundant gas resources. The Nigerian masses should not be
made to suffer because two government agencies refused to agree. We are calling
on the federal government to settle the matter for the sake of the Nigerian
masses,” he said.
Ogbuanu, who is the Managing Director of Second Coming
Nigeria Limited, further disclosed the NIPCO Plc was the only offtaker that had
stock of the product due to the recent strike embarked upon by the NUPENG,
which prevented the company from loading out LPG to marketers.
He however, stated that NIPCO had since exhausted its stock
of LPG, following the suspension of the strike action by the tanker drivers.
“NIPCO had little stock which they could not load out because of the strike
action but since the strike ended, they have exhausted their stock. They are no
longer collecting money from the marketers because they don’t have product,” he
added.
He said the alternative supply of LPG would have come from
Port Harcourt and Warri Refineries but lamented that the two refineries were
not producing LPG.
Ogbuanu said the current development had resulted in the
scarcity of LPG as 12.5kg cylinder of gas, which was sold at N2,800 is now
being sold between N3,500 and N4,500.
Immediate past National President of the Liquefied Petroleum
Gas Reps Association of Nigeria, Mr. Odo Gbolahan, told THISDAY that the
marketers did not anticipate the sudden disruption of LPG supply from the NLNG.
“It was too sudden and we did not plan for it. It is the
little stock we have that is currently in circulation. Even the product we are
getting now is from third party. The situation will get worse if the federal
government does not intervene. The federal government should come in and settle
this matter,” he said.
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