Yenagoa — Nigeria LNG on Wednesday said the force majeure it declared in October 2022 due to widespread flooding that disrupted supply is 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 in an emailed response to a Reuters enquiry.
Odeh said that “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, two sources told Reuters at the time.
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.
*Tife Owolabi; Elisha Bala-Gbogbo; Editing: Jan Harvey, Jane Merriman & Jonathan Oatis – Reuters