Business News

Vessel scarcity, forex, oil price to blame for rise in cooking gas prices – NLNG     

NLNG has said that vessel scarcity, forex and oil prices are to blame for the rise in LPG prices. The company made this statement on Wednesday, November 8.  

According to Nigeria Liquefied Natural Gas (NLNG) Limited, the three previously listed factors around the domestic macroeconomic developments as well as global factors have combined to constrain adequate supply in the domestic market. 

In the cited statement, the company said: 

The company also said that despite feed gas supply challenges, it is actively involved in LPG deliveries to the Nigerian market. A part of the statement said: 

The force majeure declared at NLNG Bonny Plant in October 2022 is still active after a year. According to the company, operations at the Bonny plant are currently operating at under 50% of their capacity.  

The company has highlighted that despite efforts, the supply of gas to the Bonny plant is significantly constrained, resulting in production levels that remain well below the plant’s intended capacity. This persistent challenge is compounded by a force majeure situation that remains in effect.” 

The company also stated that ongoing attacks on pipelines and declining productivity from aging wells are consistently interrupting the flow of gas supplies to the Bonny plant, contributing to this operational setback.