The Nigerian Liquefied Natural Gas (NLNG) yesterday, declared a force Majeure on shipments from its Bonny Island platform.
Following this event, the Nigerian gas market may be heading for a sharp price rise.
The NLNG announced the force majeure after its supplies were impaired by flooding.
Force majeure is a declaration employed when a corporate is incapacitated by circumstances beyond its control thus preventing it from meeting contractual obligations.
NLNG spokesman, Andy Odeh, said that all the company’s upstream gas suppliers had declared force majeure thereby forcing it (NLNG) to make the declaration as well.
Odeh said: “The notice by the gas suppliers was a result of high flood water levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG.”
The NLNG, which can produce 22 million tons of Liquefied Natural Gas (LNG) a year, was operating at reduced capacity.
