February 26, 2024

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Force Majeure to Continue – NLNG


CEM REPORT, ENERGY | The Nigeria Liquefied Natural Gas (NLNG) has said that the ordered force majeure on its facilities will continue.

According to Reuters the continuing force majeure was confirmed via an email by NLNG spokesman Andy Odeh.

An excerpt from the email says;


“The force majeure still subsists as the unavailability of upstream gas suppliers’ major liquids evacuation pipelines, occasioned by sabotage and vandalism, still impacts feed gas supplies.”

“NLNG continues to collaborate with its customers to minimise the impact of the consequent gas supply shortage.”

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, Reuters adds.

Reuters also noted that NLNG has a production capacity of 22 million tons per annum and 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.

[READ ALSO] NNPCL to Deliver CNG to Ease Transport Cost

In June 2023, the Statistical Review of World Energy report stated that Nigeria witnessed a decline in its natural gas production, reaching 40.4 billion cubic meters in 2022.

The country’s liquefied natural gas (LNG) exports also experienced a decrease, totalling 19.6 billion cubic meters in 2022.

In October 2022, NLNG declared a force majeure on its 22.2 million ton per year Bonny LNG export facility due to widespread flooding that disrupted supply.

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