Energy Crisis: Gas Price Rises 25% In Three Weeks …Europe Turns To Nigeria, Others For LNG

The price of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, has risen by 25.7per cent in the last three weeks as 12.5kg now sells at N8,800 from N7,000.
Investigations show that one Kg rose by 11per cent to N1,000 from N900, 3kg rose by 10per cent to N2,200 from N2,000, 6kg rose by 15.8per cent to N4,400 from N3,800, while 12.5kg rose by 25.7per cent to N8,800 from N7,000.
The Association of Liquefied Petroleum Gas Retailers (ALPGR) branch of NUPENG had called on the government to come up with a clear policy direction for the development of LPG in the country to forestall the consistent rise in the price of the product.
According to the association, the worrisome aspect of the development is that it has continued to rise on a daily basis for weeks now but began to escalate in the last one week, leading to significant increases in both depots and retail outlets.
The association said: “A similar price rise occurred in 2021 leading to the sale of 12.5kg gas for up to N10,000 in late November and early December, 2021 amidst supply shortages. We expect the government to come up with a clear policy direction for the development of LPG in the country to forestall the ugly situation.”
However, the Federal Government attributed this challenge to shortage of supply of gas from the major oil companies who have refused to allow transportation of third-party gas through their joint pipelines to the Nigeria Liquefied Natural Gas (NLNG) trains.
Appealing for support, the Minister of State for Petroleum Resources, Chief Timipre Sylva, urged partners in the NLNG project to allow access through their joint pipelines to increase supply to the plant.
Sylva said: “NLNG is at present only able to produce at about 70per cent of installed capacity and has been unable to operate at full capacity following the refusal of the joint partners – Shell, Chevron, as well as the Nigerian National Petroleum Company (NNPC) Limited, and others, to allow third parties to transport gas through their pipelines to the NLNG trains.
“These challenges have been causing the company’s inability to meet both domestic and international gas obligations.”
He added that if the NLNG partners relax their rules and allow third parties to supply gas to the NLNG, the company will be able to provide gas to help ease European Union’s gas crisis.
“The issue we have with the existing NLNG trains is that of insufficient gas supply. The partners are running out of gas and they are refusing third parties to supply gas to the trains. The partners are insisting that they can only allow third-party supply gas to the plant only if they agree to supply at subsidised rates.
“These people, of course, want to make money and they cannot supply at subsidised rates and that’s why the NLNG trains cannot produce at full capacity.”
Meanwhile, European countries, yesterday, continued their quest to have Nigeria export more Liquefied Natural Gas (LNG) to the European Union, as they seek a move away from Russian energy dependency.
Russia’s invasion of Ukraine is forcing Europe to diversify its energy supply.
It was gathered that LNG is fast becoming the low carbon alternative fuel of choice for domestic, marine and automotive consumption.
Also, the NLNG terminal currently running on six trains IN Bonny, Rivers State, has an LNG production capacity of 22.2million tons per annum, Mtpa, which is expected to increase to 30Mtpa by 2030.
The European Union (EU) Ambassador to Nigeria, Samuela Isopi, led European delegation which includes, Ambassador of Portugal, Luis Barros; Ambassador of Spain, Juan Sell; Ambassador of Italy, Stefano De Leo; and Deputy Head of Mission (France), Olivier Chatelais, on a courtesy call on the management of the Nigerian National Petroleum Company (NNPC) Ltd to strengthen its partnership with Nigeria in the energy sector.
Isopi noted that the region was ready to strengthen its partnership with Nigeria in the energy sector.
According to Isopi, with the current geopolitical situation in Europe, the continent was interested in strengthening its cooperation with Nigeria, particularly in the area of possible increase in the supplies of Liquefied Natural Gas LNG).
“Nigeria is the fourth gas supplier to Europe. At least, 40percent of the Nigerian LNG is currently exported to Europe. We are not only major clients for Nigeria; we are also major partners in the oil &gas sector because some of the companies that are working with you are from Europe. So, we share the same interest and same objectives,” Isopi added.
On his part, GMD/CEO NNPC Ltd, Mallam Mele Kyari assured the European delegation that the company would continue to deepen its historical relationship with EU companies in Nigeria in order to add more value to its business, particularly towards increasing gas supply to the global market and enhancing domestic gas utilisation.