Force Majeure: Gas Marketers Caution Nigerians Against Panic Buying

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has cautioned Nigerians against panic buying of liquefied petroleum gas (LPG), otherwise known as cooking gas as a result of the force majeure declared by the Nigeria Liquefied Natural Gas Limited (NLNG).
NALPGAM’s National President, Oladapo Olatunbosun, made the appeal in a statement against the backdrop of NLNG’s declaration of force majeure on its gas facility due to flood, and increasing customers’ desperate rush to stock the product in their homes.
Olatunbosun said that cooking gas consumers need not panic about a possible scarcity of the product as a result of the force majeure.
Force majeure is a common clause in contracts, which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties.
The circumstances include war, strike, riot, crime, epidemic or sudden legal changes, which prevent one or both parties from fulfilling their obligations under the contract.
Olatunbosun reiterated that, “Based on information reaching the association, NLNG has not shut down its production facility in Bonny as rumoured.
He confirmed that NLNG on Thursday, October 20, 2022, had shipped a cargo of LPG for the domestic market.
He said that the dedicated vessel for shipment of LPG from the NLNG Plant in Bonny, “Alfred Temile”, arrived in Lagos on Thursday to discharge product.
“The public should know that the supply of LPG from NLNG has not stopped.
“We should not give opportunity for further price hike due to speculated shortage of the product”, he said.
“We are already in hard times with the Russia/Ukraine war causing upset in the markets, and the scarcity,” he said.
Olatunbosun said that NLNG has assured the association that it would keep producing LPG based on the feed-gas it receives from its gas suppliers, adding that production was expected to pick up after the flood recedes.
He, however, cautioned middlemen in the value chain not to take advantage of the hysteria in the market as a result of the flood, which has also hampered the distribution of the product across the nation.
The president called for urgent intervention by the critical stakeholders to grow the industry, and for more investment to meet demand and crash the price.
Earlier, in a statement, the General Manager, External Relations and Sustainable Development, NLNG, Andy Odeh, advised Nigerians on the need not to rush to fill their gas cylinders as there was enough quantity of LPG to satisfy the local market.
Odeh said that the flooding or force majeure declared has no impact on LPG availability.
The NLNG accounts for 40percent supply of gas in the domestic market, and in recent times, has been the sole supplier for the domestic market.
Odeh further explained that the company’s plant was in operation at a limited capacity due to reduced gas supply from some of its upstream gas suppliers.
None of NLNG’s assets on Bonny Island or in any of its host communities are impacted by the flood.
The force majeure is as a consequence of a similar notice by upstream gas suppliers due to the impact of flood in their production facilities.
“NLNG continues to monitor the situation with upstream gas suppliers and is evaluating the impact of the flood on its business,” he said, assuring that the firm was working with all critical stakeholders to mitigate the impact on product deliveries.

By: Nelson Chukwudi