Six months after, NLNG yet to lift force majeure on supplies

Nigeria LNG Limited has yet to lift the force majeure on product supplies it declared more than six months ago.

NLNG had on Oct. 18 declared force majeure on product supplies from its production facilities on Bonny Island, following the declaration of force majeure by all its upstream gas suppliers.

It 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 a significant disruption of gas supply to NLNG. 

“The plant continues to produce LNG and LPG commensurate to the feed gas it receives from its upstream gas suppliers,” the company said in a statement in January. “The company is closely monitoring the resolution of supply challenges by all relevant parties,” NLNG added.

The Managing Director and Chief Executive Officer of NLNG, Philip Mshelbila, while speaking at an industry event in Abuja last month, lamented the company’s inability to meet its existsing obligations to customers.

“Contracts are now being signed with Qatar, the US, and other countries; LNG contracts are long-term contracts and now the biggest demand markets are locking themselves in the 20-year market,” he said.

“Do you know what our status is? We are under force majeure, meaning we cannot meet our obligations to existing customers, not to talk of being able to sign up new customers or new contracts,” he added.