‘NLNG’s Force Majeure Over Flooding ’ll Continue’

Nigeria Liquefied Natural Gas (NLNG) has said the force majeure it declared in October 2022 due to widespread flooding that disrupted supply was continuing.
Force majeure refers to unexpected external circumstances that prevent a party to a contract from meeting obligations.
“The force majeure still subsists as the unavailability of upstream gas suppliers’ major liquids evacuation pipelines, occasioned by sabotage and vandalism, still impacts feedgas supplies,” NLNG spokesman, Andy Odeh, said.
Odeh said that “NLNG continues to collaborate with its customers to minimise the impact of the consequent gas supply shortage,”
At the time, the company did not cancel cargoes despite the force majeure, which was only pre-emptive to protect it and notify clients if the situation persists for much longer.
NLNG, with a production capacity of 22 million tonnes per annum, delivers most of its shipments to clients in Europe, including Galp and Endesa with whom it has long-term contracts.
It also operates over 70 spot agreements across major LNG markets.
NLNG covers six trains at Bonny Island, with a seventh train under construction.
The facility is Nigeria’s largest consumer of gas, consuming around 3.5billion cubic feet per day.
Three joint ventures provide gas to NLNG, Shell Petroleum Development Co. (SPDC), Total Exploration and Production Nigeria (TEPNG) and Nigerian Agip Oil Co. (NAOC).
According to Nigerian National Petroleum Company Limited (NNPCL) data from August, SPDC is the main supplier of gas to NLNG.