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National Operations Controller, of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Mike Osatuyi, said independent marketers sourced dollars for importation from the black market, hence, the gas price would continue to increase until the naira strengthened at the exchange market.
“Our members, who still sell gas, bought 20,000 metric tonnes at around N11 million last month; but now, the price has jumped to N12.3 million per 20,000 metric tones,” he said.
He noted that gas consumers stood the risk of further price hikes as long as the dollar continued to strengthen against the naira, one of the signs of an ailing economy under the Muhammadu Buhari administration.
Apart from low gas supplies in the international market majorly due to the Russian/Ukraine war; it was also learned that gas production from the Nigerian Liquefied Natural Gas Ltd, NLNG has plummeted.
According to sources close to the matter, the drop in output was majorly due to the high-leveled theft; as well as oil and gas pipeline vandalism; which had left NLNG operating at 60 percent capacity.
The source also cited “feed gas constraint and high maintenance activities” as part of the causes.
Output and export from NLNG’s six-train Bonny plant had dropped to 16.8 million tonnes in 2021, from 20.7 million tonnes in 2020 and 2019.
NLNG was said to have lost almost $7bn in revenue so far in 2022 due to gas supply constraints,; according to the company’s General Manager, Production, Adeleye Falade; who spoke at the 45th Nigeria International Conference and Exhibition 2022.
Natural gas markets worldwide have been tightening since 2021. Global gas consumption is expected to decline by 0.8 percent this year as a result of a record 10 percent contraction in Europe; as well as flat demand in the Asia Pacific region, the IEA said in its quarterly gas market report.
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