The supply of Liquefied Petroleum Gas (LPG) to domestic market may encounter serious setback if Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigeria Liquefied Natural Gas (NLNG) are not able to resolve the issues arising from non-compliance with the nation’s Cabotage Law.
This is because the chartered vessel by the NLNG that has been bringing LPG, otherwise known as cooking gas, to domestic market through Lagos port from Bonny was detained by NIMASA for going against the Cabotage Law, as it does not have Nigerians a part of its crew members.
The implications of the non-resolution of the issue early enough is that the product could become scarce and subsequently lead to increase in price.
The vessel is the one dedicated to supply of LPG to the domestic market across the country, and carries over 13,000MT.
The issue got to its crescendo last week with NIMASA detaining the vessel at the NOJ, one of the berthing space especially dedicated at the NNPC owned jetty at Apapa. It was released after the intervention of prominent stakeholders including the Presidency on Saturday. However, its release does not mean the issue has been resolved.
Under the Nigerian law all foreign vessels operating charter services in Nigeria waters are supposed to have a certain number of Nigerians on board as part of its personnel.
The vessel – Navigator Capricorn – on lease to NLNG since last year has been having a running battle with NIMASA over their operations in Nigeria, being a foreign vessel.
The vessel berthed at the jetty about 13 days ago and had finished discharging gas to major gas depots in Apapa including PPMC, Nipco, major oil company’s facility as well as 26 off-takers of NLNG and billed to sail out before NIMASA clamped down on it.
Andy Odey, manager, media relations, NLNG, when contacted, said, “The vessel does not belong to NLNG,” but admitted it was a chartered vessel by the company and had been released to sail back to Bonny Island.
But another industry source said even though the vessel had been released, “it does not mean that it has been left off the hook by NIMASA, as discussion is still ongoing between NIMASA, NLNG and the owner of the vessel.”
Nuhu Yakubu, president of Nigeria LPG Association (NALPGAM), described the issue as a minor thing, which was being resolved.
The issue is been given utmost attention due to its likely grave impact on supply across the country, as the vessel is the only one supplying to all depots in Nigeria, he said
