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NLNG: Bonny Plant Operations Affects Nigerian LPG Retail Market Price

NLNG: Bonny Plant Operations Affects Nigerian LPG Retail Market Price
NLNG: Bonny Plant Operations Affects Nigerian LPG Retail Market Price

Nigeria LNG Ltd. says its Bonny Island facility is still operational despite a force majeure declared in October 2022 and feed gas supply issues. This was confirmed on Monday in a statement by Mr Andy Odeh, General Manager, external relations and sustainable development, NLNG. He further stated that the plant continued to produce LNG and LPG commensurate with the feed gas it received from its upstream gas suppliers.

“In addition to ensuring steady operation, NLNG remains committed to its culture of transparency and maintains consistent communication with key stakeholders on developments in the upstream sector. The company is closely monitoring the resolution of supply challenges by all relevant parties.” 

The NLNG supply challenges come at a time when there is increased gas demand due to the European winter. Nigeria has been a key LNG supplier to Europe over the past year, helping to partially fill the gap left by Russia's supply cuts. According to the World Economic Forum, the European Union could face a 30 billion cubic meter shortage of natural gas in 2023 due to unreliable supplies from Russia and the prospect of rising demand from China. Although Europe has made "impressive progress" in 2022 to reduce dependence on Russian gas supplies and achieve optimal gas storage, there is no guarantee that the continent's mild winter temperatures will last.

How Does the Bonny Plant Deficit Supply Affect the Prices of Cooking Gas in the Country?

However, recent news reports that the average retail price paid by consumers to purchase Liquefied Petroleum Gas (LPG) also known as cooking gas has continued to skyrocket. Correspondents who have monitored the LPG retail market reports that the average retail cost of refilling 12.5kg gas cylinders rose to 9,700 NGN in December 2022 as against 7,800 NGN earlier. The price of refilling a 3kg gas cylinder stood at 2,600 NGN as against 1,800 NGN, and a 5kg cylinder at 4,600 NGN as against 3,500 NGN.

As can be observed there is a substantial price increase in the Nigerian LPG retail market, the general public and the LPG industry can only hope that there is a balance between supply and demand fostering a reduction in LPG retail prices.

SOURCES

Chronicles.ng

Cable.ng

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