Tayo Busayo, Abuja
DAILY COURIER – Price of cooking gas is set to rise further following the ravaging flood in the oil and gas producing areas of the country.
Consequently, the Nigeria Liquefied and Natural Gas (NLNG) has declared force majeure as the flood ransacked 27 of the 36 states in one month and this could lead to cooking gas scarcity.
With over 600 people reportedly dead and 1.4 million displaced, the NLNG joined its upstream gas suppliers to shutdown operations.
In a statement on Monday by the firm’s spokesman, Andy Odeh, the NLNG said it is yet to ascertain the extent of the impact the flood has on its operation.
It was gathered that gas production has been shut-in by the upstream gas suppliers due to the flood, and as a result, it has disrupted gas supply to NLNG
Odeh told Reuters that, “The notice by the gas suppliers was a result of high flood water levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG.
The force majeure will affect global gas supply which has already been suffering from sanctions placed on Russia, as Europe looks for an alternative to commodities coming out of Vladimir Putin’s country.
It will also affect availability of cooking gas in Nigeria, compounding the supply challenges faced by Nigeria Liquefied and Natural Gas.
Already, due to crude oil theft, the firm is producing below capacity, recording 68% output.
This will increase the cost of gas price in Nigeria, thereby, aiding rise in cost of living in the country, unable to keep its inflation rate down, having recorded a 20.77% rise in September, up from 20.52% of August 2022.
Note that prior to the flood forcing NLNG to shutdown operation, the average retail price of 12.5kg cooking gas had increased from N9,824.07 in July to N9,899.34 in August 2022.
In August last year, the price was N4,514.82, according to an NBS report.
The price has exceeded N10,000 per 12.5kg cooking gas cylinder in some parts of Lagos.