Friday, October 21, 2022

Nigeria LNG still producing, exporting despite force majeure

Nigeria LNG is still producing and exporting liquefied natural gas despite a force majeure declaration made due to heavy flooding, a spokesperson told local television channel Arise TV on Thursday.

The company made the legal declaration earlier this week amid the worst flooding in 12 years, saying all of its upstream gas suppliers had declared force majeure.

Sources told Reuters this week that no cargoes had yet been cancelled, and that the force majeure was pre-emptive in case the flooding continued for much longer and did impact loadings.

NLNG spokesperson Andy Odeh said that while the company was still operating, it was "not getting enough gas" due to the impact of the flooding on its suppliers.

He said NLNG would work to protect facilities from future flooding, which he said was worse than usual due in part to climate change.

Authorities blamed the flooding, which affected 33 of Nigeria's 36 states, on unusually heavy rain, joined with the release of water from a dam in Cameroon.

Portugal relies heavily on NLNG gas and oil major Shell, NLNG's largest single offtaker, are at most risk from the outage, according to investment bank Jefferies. 

By Libby George


Related story: Nigeria LNG declares force majeure as flooding disrupts gas supply

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