Nigeria LNG's force majeure declared in October to continue
YENAGOA, Aug 9 (Reuters) — Nigeria LNG on Wednesday said the force majeure it declared in October 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. (Reporting by Tife Owolabi in Yenagoa; Writing by Elisha Bala-Gbogbo; Editing by Jan Harvey, Jane Merriman and Jonathan Oatis)
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.