Nigeria LNG announced on Wednesday that the force majeure, initially declared in October due to extensive flooding causing supply disruptions, remains in effect.
Force majeure denotes unforeseen external circumstances that hinder a contracting party from fulfilling its obligations.
“The force majeure still stands due to the continued unavailability of upstream gas suppliers’ primary liquids evacuation pipelines, which has been caused by acts of sabotage and vandalism. This ongoing issue continues to impact the supply of feedgas,” stated NLNG spokesperson Andy Odeh in a response sent via email to a Reuters inquiry.
Odeh further added, “NLNG remains engaged in cooperation with its clients to mitigate the repercussions of the resultant shortage in gas supply.”
Despite the imposition of force majeure, the company refrained from cancelling its cargoes. This declaration was a pre-emptive measure aimed at safeguarding the company’s interests and notifying clients in the event of an extended duration of the situation, as relayed by two sources to Reuters previously.
With an annual production capacity of 22 million tonnes, Nigeria LNG predominantly delivers its shipments to European clients such as Galp and Endesa, with whom it holds long-term contracts. The company also operates more than 70 spot agreements across major LNG markets.
