The Nigeria Liquefied Natural Gas Limited (NLNG) has attributed the recent increase in cooking gas prices to a combination of factors, including vessel scarcity, fluctuations in foreign exchange rates, and rising oil prices. According to a market survey conducted at the beginning of the month, the price of 20 metric tons of cooking gas at the terminal was N10 million. However, by October 20, the price had surged to N14 million per 20 metric tons.
In an official statement released on Wednesday, NLNG highlighted the dynamic nature of the domestic Liquefied Petroleum Gas (LPG) market, stating that it is subject to various external factors and market forces. The company identified changes in exchange rates, escalating price benchmarks linked to crude oil prices, and vessel scarcity induced by the drought in the Panama Canal as contributing factors to recent price hikes in the domestic market.
NLNG acknowledged that these challenges, coupled with domestic macroeconomic developments and global influences, have impacted the supply of LPG within the domestic market. Despite these hurdles, NLNG emphasized its commitment to playing a pivotal role in the growth of the domestic LPG market.
The company noted its significant contribution to the market, with the LPG market growing 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 also highlighted its efforts to actively participate in LPG deliveries, ensuring a consistent supply of cooking gas to consumers across the country.
NLNG further outlined its commitment to supplying Butane and Propane to the domestic market, with plans to deliver over 450,000 metric tons per annum. Despite challenges in feed gas supply, NLNG has delivered over 380,000 metric tons of LPG since the beginning of the year, maintaining an unwavering focus on ensuring reliable supply at market-reflective prices. The company is collaborating with industry stakeholders to achieve this objective and remains committed to its mission.
