Group lists forex, limited receiving terminals as cause of rising cost of cooking gas
As the rising cost of cooking gas failed to fall, the President of Nigerian Liquefied Petroleum Gas Association (NLPGA), Dayo Adeshina, has given insights on the reasons behind the sustained high cost in Nigeria.
In an interview, he listed among others, the challenge of getting foreign exchange and scarcity of receiving terminals, saying as big as Lagos and all its service areas, it has only two terminals.
According to him, efforts of the Nigerian Liquefied Natural Gas Limited (NLNG) to saturate the domestic market have not yielded any good results as majority of the volume so consumed in Nigeria is imported.
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Explaining more, Adeshina said “We get the product with dollar in Naira equivalent, and as you can see now, a dollar to naira is around N360, unlike last year when we had an exchange of around N190 to a dollar. Part of the bottleneck that leads to the LPG pricing issues includes inadequate and unevenly spread receiving terminals. As at today, we have only two operational terminals in Lagos. In other words, there is limited jetty availability.”
“Consequently, most of the time, the jetty is choked up because other vessels also come to discharge other petroleum products, including diesel, petrol and kerosene. But the situation may improve in future as NLNG Limited has certified another jetty called Bulk Oil Plant for product transfer.”
“Also, a new terminal will come on stream in Calabar by July, and another in Port Harcourt before the end of this year. Also, NIPCO will be expanding by 5,000 tonnes, likewise Navgas by 3,000 tonnes,” President of Nigerian Liquefied Petroleum Gas Association (NLPGA), Dayo Adeshina averred.
