By Fatima Saka
The Liquified Petroleum Gas Retailers (LPGAR) says the shutting down of the Nigeria Liquefied and Natural Gas (NLNG) processing plant may lead to increase in cooking gas price.
Mr Umudu Michael, National Chairman, LPGAR, branch of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) said in Lagos on Tuesday that the declaration of force majure on LPG plant by NLNG posed scarcity threat to Nigerians.
Michael said: “There is high tendency that the situation will lead to LPG scarcity in the country or a rise in the price owing to possible resort to importation.
“This means that LPG marketers will depend more on LPG importers having depots in Lagos.”
The NLNG in a statement on Oct. 17 by its General Manager, External Relations and Sustainable Development, Mr Andy Odeh, declared force majeure on its 22 million tons per annum (mtpa) processing plant, due to widespread flooding that disrupted gas supply to the company.
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.
The retailer, however, consoled those who had lost their loved ones in the ravaging flooding in the country as well as those whose means of livelihood had been affected by the flood.
“I also sympathise with millions of Nigerians who have been rendered homeless as a result of the flooding who are now living in refugee camps and those stranded in isolated areas.
“The flooding is a disaster and it is expected to affect LPG production, supply and distribution in Nigeria.
“It is very unfortunate because when natural disasters such as the ongoing flooding in the country leads to such force majeure by a major LPG production company, the impact can be enormous in the market,” said Michael.