Nigeria Liquefied Natural Gas (NLNG) has warned that the cost of filling a 12.5kg cylinder of cooking gas in Nigeria may hit N12,000 or more by November, up from N9,800 as of October.
This was because the cover price of Liquefied Petroleum Gas (LPG) also known as cooking gas, may soon spike across various parts of the country as the Nigeria Liquefied Natural Gas (NLNG) Limited declared force majeure on its 22.2 million tons per year Bonny LNG export facility.
Furthermore, NLNG force majeure declaration on its gas supply contracts was due to the widespread flood that disrupted the upstream activities of the gas supply.
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The NLNG disclosed the development in a statement by its General Manager, External Relations and Sustainable Development, Mr Andy Odeh, saying a clause known as “force majeure” is frequently found in contracts and, in essence, releases both parties from responsibility or obligation.
This happens when there is an extraordinary event or circumstance, such as a war, strike, riot, crime, epidemic, or sudden changes in the law. It then prevents one or both parties from upholding their end of the bargain.
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Energy experts, while speaking at separate interviews with Nairametrics stated that if the flooding continues till November amid other industry issues, it will cost Nigerians twelve thousand naira or more to fill a 12.5kg gas cylinder.
However, the price hike could be staved off if the challenges are over.
Energy Consultant, Gboyega Amu said:
“The cost of 12.5kg is expected to hit N12,000 or more by November, as NLNG’s declaration could worsen Nigeria’s cash crunch and would curtail global gas supply as Europe and others struggle to replace Russian exports due to the invasion of Ukraine in February.”
