19 Mar 2014 More
Cylinder Tank Shortage Threatens LNG Shutdownposted by Brown Books @ 09:15 0 Comments
Even the simplest of things can gum up the works sometimes. It’s no secret that here in the
US there is
an infrastructure shortage, but did you know that Nigeria
has an infrastructure problem of its own?
It seems that a lack of gas cylinders may bring the LNG market to a
Basil Ogbuanu, National President of the Nigerian Association of LPG Marketers, says that unless the government steps in to solve the problem, the country will not be able to keep supplies stable. Already
is below average for Africa.
“We all know that you can use gallons to buy kerosene, but you need cylinders to buy cooking gas. These cylinders are not enough in the country,” says Ogbuanu. “The companies producing cylinders locally have all folded up due to unfavorable government policies and inadequate power supply.
Now, we import all cylinders that are being used in the country. A standard cylinder of 12.5kg will cost about N8,500 in the market, which average Nigerians cannot afford.”
Ogbuanu is asking the government to offer LNG to its people at the lower domestic rate rather than the international price.
“The issue of domestic pricing is another factor militating against increased consumption pattern of cooking gas in
Nigeria although we
recorded an increase in the consumption rate last year. This is because
Nigerians consumed 170,000 metric tonnes of cooking gas as of December 2013,”
Ogbuanu is also urging the government to use the current 20 percent kerosene subsidy to help supply its citizens with the much needed cylinders.
“It is becoming clear that subsidy payment on kerosene is not sustainable. If the Federal Government can use only 20 per cent of what it is using on kerosene to support cooking gas consumption, it will deepen the market.”
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