The Nigeria Liquefied Natural Gas (NLNG) Limited has declared force majeure on its 22.2 million ton per year Bonny LNG export facility over supply disruptions caused by ravaging flood.
The gas firm took the action due to widespread flooding that has disrupted supply, a development that could further compound the country’s revenue crisis.
The NLNG disclosed the development in a statement issued and signed by its General Manager in charge of External Relations and Sustainable Development, Mr Andy Odeh.
The declaration could worsen Nigeria’s financial crisis and put further pressure on the global gas supply, as Europe and other major economies struggle to replace Russian gas exports.
Andy Odeh said, “The notice by the gas suppliers was a result of high floodwater levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG.’’
He noted that NLNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure.