This Day: Nigeria: Resolving the Cooking Gas Supply Logjam

Ejiofor Alike writes that despite the 50 per cent crash in the prices of crude oil and liquefied natural gas, importers and marketers of liquefied petroleum gas or cooking gas, have continued to sell the deregulated product at exorbitant costs in Nigeria on account of the existing monopoly and problems of logistics

The price of crude oil at the international market dropped from $115 per barrel in June 2014 to less than $50 at the weekend, representing over 50 per cent slump and with the interconnectivity of the energy market, the plummeting crude oil price also affected the price of Liquefied Natural gas (LNG) and Natural Gas Liquids (NGLs).

With the interconnectivity of the energy market, the drop in the price of crude oil led to a sharp drop in the spot price of Liquefied Natural Gas (LNG) as it crashed from a peak of over $20 per million British Thermal Unit (mmbtu) in February 2014 to less than $10 per mmbtu in December 2014.
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