*We are fair to all players – NLNG
Some Liquefied Petroleum Gas (LPG) off-takers have accused the Nigerian Liquefied Natural Gas (NLNG) of marginalizing them in distribution of the product in Lagos.
Some of the LPG off-takers, who preferred anonymity, made the allegation in an interactive session with journalists in Lagos. They alleged that NLNG deliberately restricted supply of LPG, also called cooking gas, to Pipeline and Products Marketing Company (PPMC) jetty in Lagos which includes NIPCO jetty in the last two years.
According to them, NIPCO receives the bulk of the NLNG’s supply, which is an average of 8,000mt for every delivery while other terminals like NAVGAS get nothing.
The off-takers said that NAVGAS, the operator of the terminal, had requested for supply on several occasions but got no reason was given by NLNG on why it could not deliver LPG to the terminal.
They said that NAVGAS terminal has only received product thrice this year while PPMC/NIPCO terminal had received over 12 deliveries. We have also gone to other off-takers to receive via NAVGAS facility and still no reason given for not delivering.
“Traditional delivery schedule of LPG in the past has been to the two jetties of NAVGAS and PPMC. Also, other terminals in the country are unable to receive LPG from NLNG due to low draft which cannot take NLNG vessel (Navigator Capricorn) if fully laden.
“All terminals including NAVGAS and PPMC/NIPCO import are to augment domestic supply in the event NLNG vessel is busy delivering to other terminals.”
The off-takers said there was a table which illustrated the disproportionate delivery of LPG by NLNG since the start of the current contract year, which is expected to end in September.
They alleged that NIPCO had received a relatively favourable delivery compared to other terminals.
The off-takers also alleged that NIPCO capacity was 9,800mt while NAVGAS and PPMC had 11,000mt and 4,000mt respectively, adding that the NLNG performance could be increased significantly in spite of the reasons for not delivering regularly into the NAVGAS terminal especially now with 51 per cent utilisation only.
NLNG, however, denied the allegation when its Corporate Communications Department was contacted.
Head, Media Relations of Nigeria LNG Limited, Mrs Anne-Marie Palmer-Ikuku, said the company had been supporting the domestic LPG) market since 2007. She said from the beginning, Nigeria LNG’s involvement in that market had promoted market competition while encouraging all terminals to provide Third Party Access (TPA) to all credible buyers.
According to her, the principle has guided NLNG’s engagement with terminal owners and buyers. She said: “Today, the significant majority of NLNG off-takers take their volumes through the PPMC jetties which have provided TPA to all interested buyer and are preferred because they are cheaper.
“NLNG as a reasonable and prudent operator honours all its contracts and does not discriminate against any buyers. All Annual Contract Quantity (ACQ) commitments have been met for all buyers without exceptions.
“No buyer has been denied volumes that were committed to them during the contract year. Algasco for instance has taken 23,643.39mt out of its ACQ of 26,000MT for this contract year. This is 90 per cent of its volumes with more than two months to the end of the contract year.”
She said NLNG would continue to work with the government, buyers and other industry players to ensure a level playing field for all buyers, adding that the company would continue to help in boosting the growth recorded in the oil and gas sector of the economy.
