Even though the tax-induced row between the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigeria Liquefied Natural Gas Limited (NLNG) appear to have been resolved, the action has resulted in desperation on the part of Nigerian importers and marketers of liquefied Petroleum Gas.
Apparently frustrated by the delay in resolving the row, marketers have turned to Niger Republic so as to meet soaring local demand.
Even though the tax-induced row between the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigeria Liquefied Natural Gas Limited (NLNG) appear to have been resolved, the action has resulted in desperation on the part of Nigerian importers and marketers of liquefied Petroleum Gas.
Apparently frustrated by the delay in resolving the row, marketers have turned to Niger Republic so as to meet soaring local demand.
Shipping Position Daily had reported exclusively on Monday that the marketers have been unable to meet demand and that prices of the commodity have soared since the face-off snowballed into a protracted legal battle.
The NLNG accounts for 150,000 Metric Tonnes of LPG yearly from its Bonny Island plant in Rivers State, but since the blockade of NLNG ships, LPG terminals in Lagos have exhausted their supply leading to artificial scarcity; this has led dealers with no option than to import from Niger Republic.
Our correspondent gathered that NLNG usually loads 150,000 Metric Tonnes 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 into the local market.
One of the ships that were caught in the row is Gaz Providence, a vessel which discharged 9,000 tonnes of cooking gas for domestic consumption.
Confirming the situation of things, president of Nigeria LPG Association,Mr. Dayo Adeshina said 10 of the companies appointed as off-takers to lift the product in vessels and sell to the local market have paid for the products, but are yet to receive them due to the row between the two government agencies.
“As we speak, none of the terminals have supply in Lagos since NLNG was not allowed to sail from Bonny to Lagos and the owners have paid for their products to be supplied here in Lagos. The prices of the little that is left have been sky-rocketed
“NIPCO will run out of stock very soon if they have not already run out and we are left with the option to import this product that we are abundantly blessed with but we hope that the Federal Government will relax the rules guiding the importation of LPG,” he said.
Commenting further on the LPG supply from Niger Republic, Adeshina said the country cannot meet the demand of one state in Nigeria, adding that the Federal Government should intervene on the issue between the two agencies.
“It is rather unfortunate that this is happening at this time. This the first major disruption of NLNG supply since it began operation in 2009 and it is happening at a time when government has commenced enlightenment campaign on LPG usage in the country. No doubt it will affect government effort negatively,” he said.
National President of the LPG Gas Operators of Nigeria, Alhaji Auwalu Ilu also stated that the bad blood between both organizations has effectively stalled the supply of the cooking gas to the domestic market.
“There is no gas available now because the major supply source is the Nigeria NLNG and since this incident happened there has been scarcity of gas in Nigeria, and unfortunately the refineries are not working”, he lamented.
Giving an insight into the price of the stock in the market, Ilu who is also the Chief Executive Officer of Ultimate Gas Limited stated that presently, a 12.5 kg cylinder is being sold for N3, 500, which under normal circumstances goes for N2, 600 or N2, 800.
He pointed out that the NLNG vessel is already loaded with gas but that it cannot leave Bonny because of the blockage.
On the rising fears about the quality of gas imported from Niger Republic, because it si said to contain 50 per cent of propane, the National President, Liquefied Petroleum Gas Retailers Association of Nigeria, Michael Umudu said importing cooking gas from Niger Republic is not against the laws of Nigeria.
According to him, “the current LPG standard by SON says that propane content should be a maximum of 50 per cent and Niger Republic gas meets the standard”.
Shipping Position Daily recalls that the almost one month old NIMASA/NLNG row was resolved last Friday when the latter agreed to pay the former the accruable tax.
The agreement has also been endorsed by the Federal High Court in Lagos as its consent order.
However, all efforts to confirm whether the blockade has been removed by NIMASA were unsuccessful. The deputy director, public relations of the agency; Mr Oshamgbi Ishichei was not available for comments, and when he was eventually reached via the telephone, he asked our correspondent to call back.
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