Towards resolving the recent scarcity and hike in price of liquefied natural gas otherwise known as cooking gas in Nigeria, the Nigerian National Petroleum Corporation (NNPC) and Sahara Energy yesterday unveiled two vessels in Ulsan, South Korea.
NNPC said the deal is a joint venture between its subsidiary, West Africa Gas Limited (WAGL) and Sahara Energy which will ensure uninterrupted supply of the commodity to the market.
Speaking on the development, NNPC spokesperson, Ndu Ughamadu, described the vessels as “the game changer in the supply network of the gas subsector.”
Quoting the Corporation’s Group Managing Director, Maikanti Baru, who
spoke at a pre-naming event in South Korea, Ughamadu said he “expressed delight that the venture established in 2014 had started recording success within a short time”.
He said WAGL JV, which was incorporated in March 2013, will be the special purpose vehicle for the off-take, marketing and trading of Natural Gas Liquids, NGLs across Africa and beyond.
“The JV is to be run by two companies, NNPC LNG Ltd, a wholly-owned subsidiary of NNPC, and Sahara Energy’s oil and gas trading arm, Ocean Bed Trading Ltd (BVI),” Mr. Ughamadu explained.
Users of cooking gas in Nigeria, have witnessed a hike in price and scarcity of the product in recent times.
The usual 12.5kg cylinder which was sold at N3500, now sells for N5,500 in Lagos and Abuja.
In a statement by the Nigeria Liquefied Natural Gas company last weekend, the company said the scarcity was due to the inability of its vessels to discharge the product at the Apapa gas receiving facilities in Lagos.
“The delay, coupled with jetty unavailability, resulted in temporary product shortages in the market,” the company’s General Manager, External Relations, Kudo Eresia-Eke, explained.
He then blamed the situation on priority being given to vessels discharging other petroleum products, including petrol, diesel and household kerosene by the authorities at the receiving facilities in Apapa, Lagos.