Force Majeure: NLNG Cautions Against Panic Buying, Hoarding Of Cooking Gas


The Nigeria Liquefied and Natural Gas (NLNG) Company has allayed fears of cooking gas scarcity and price hike following its declaration of force majeure due to the flooding ravaging the country which has disrupted supply.

The General Manager, External Relations and Sustainable Development at the NLNG, Andy Odeh, made this known on Channels Television’s Sunrise Daily programme on Monday.

“We don’t determine the price of gas as a company. However, I know the fears and concerns out there but I think it is important to reiterate that we are producing LPG (Liquefied Petroleum Gas) which is the cooking gas into the domestic market.

“Only last week, the only dedicated LPG vessel left the Bonny facility to deliver into Lagos. Will this affect the price of cooking gas? No it shouldn’t. I think to an extent the National Association of LPG Marketers has also gone out to assure the public that there is no need to panic buy, there is no need to stock or store cylinders in our homes because of fear or concern that there will be scarcity,” Odey said.

Force majeure, a common clause in contracts, essentially frees both parties from liability or obligation when a circumstance beyond the control of the parties like war, crime, epidemic or sudden legal changes prevents one or both parties from fulfilling their obligations under the contract.

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The notice by the NLNG last week had caused panic among the consumers of Liquefied Petroleum Gas also known as cooking gas who feared there could be scarcity of the vital commodity.

On when things are expected to return to normal, the NLNG boss acknowledged that weather is unpredictable but assured Nigerians that things will get better in the next few weeks.

“As you know this is all about flooding, I will say it is difficult to predict the weather.

“When water recedes and this we expect will happen by the upstream suppliers but again I think at this point safety of people who work on those sites and of course safety of assets in those facilities are paramount.

“In the coming weeks we will continue to monitor the situation. In terms of timeline, we are looking at next few weeks, confirmation is that as we speak the water is no more rising, so in the next two to three weeks we expect it to recede”, he assured.

13 Million Households To Embrace Cooking Gas In Five Years, Says Osinbajo

Osinbajo Proffers Solutions To Challenges Facing Legal Profession In Nigeria
A file photo of Professor Yemi Osinbajo at an event in Abuja on March 28, 2019.


Vice President Yemi Osinbajo says the Federal Government is working to ensure that 13 million households embrace cooking gas in the next five years.

He stated this on Friday while commissioning a Liquified Petroleum Gas (LPG) Cylinder Manufacturing Plant in Lekki area of Lagos State.

“The goal is to achieve five million Metric Tonnes (5,000,000 MT) of domestic, commercial and industrial LPG utilization in 10 years.

“Specifically, for household cooking, we are targeting a 40 percent adoption rate (i.e. 13.8m households) in five years, and 73 percent adoption in 10 years (33.3m households),” he stated.

Osinbajo also reiterated the current administration’s commitment to creating jobs for Nigerians.

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According to him, the LPG sub-sector of the nation’s economy has the potential of providing 2 million jobs.

Osinbajo who also heads the National Economic Council (NEC) said the Federal Government has demonstrated its commitment by establishing an Inter-Ministerial Committee and a multi-stakeholder national coordinating body – the National LPG Expansion Programme.

The Vice President noted that progress had been made in LPG adoption with the removal of five percent VAT from the domestic pricing of the commodity to discourage importation.

“When we came into office in 2015, one of the issues we identified, was the abysmally low domestic utilization of LPG in Nigeria,” he added.

The vice-president said that it was wrong for Nigeria to continue to rely on biomass fuels such as firewood and traditional fuels such as petrol and diesel for their domestic energy needs.

Fashola Commissions Ikorodu Skid Plant

Lagos State Governor, Mr. Babatunde Fashola (SAN), on Tuesday commissioned another Skid Plant in Ikorodu, reiterating the commitment of his administration to ensuring that Lagos residents make the Liquefied Petroleum Gas (LPG) a preferred choice for cooking.

Speaking at the Ewu Elepe Village, Ginti, venue of the commissioning, Governor Fashola, who was represented by his Deputy, Princess Adejoke Orelope-Adefulire, said one of the priorities of his administration in this second term was to revamp and reposition the Energy Sector in the State to enable it play its role in the socio-economic and environmental development of the State.

Expressing dismay that Nigeria is ranked the lowest in the use of LPG in the continent, in spite of its position as the largest producer of the product, the Governor declared, “We also recognize the immense potential of the country’s gas resources. It is only right that we devise a means to apply the existing solution to an existing problem meaning that this gas can be used to provide electricity for our country Nigeria”.

On the reason for introducing the cooking gas to Lagos state residents, Governor Fashola said, “A large percentage of households in Nigeria still use kerosine and firewood for cooking. These two fuels are not only the major sources of emission but on the long run may be more expensive than LPG”.

He said the Lagos State government recognizes the negative impact the current cooking fuel, kerosene and firewood, pose to the environment and people in terms of emission, “The use of LPG has several advantages as fuel because of its simple structure and because it is free from impurities, making it one of the few clean and efficient burning fuels in the world”.

He said the State Government was “working seamlessly” to strengthen the needed infrastructure, to ensure the development of the oil sector and to ensure that Lagos residents could make a shift using liquefied petroleum.

In his remarks earlier, the Managing Director of Banner Gas, one of the companies partnering with the State Government in the venture, Mr. Nuhu Yakubu, said the introduction of LPG, christened EKO Gas, was a demonstration of the State Government’s commitment to “Talk – to –Action”.

He said, “Before the year runs out, we are very sure and convinced that the Lagos State Government will have the course to commission more projects under the Energy programme of the State Ministry of Energy and Mineral Resources”, the Managing Director said adding that his company would be happy to have the Governor commission another Banner Gas- Eko Gas project powered by Banner Gas.

Four months ago, this kind of plant was launched in Surulere by the Lagos State Governor, Mr. Babatunde Fashola (SAN).