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NLNG shuts operations over flooding, gas scarcity looms

The Nigeria Liquefied and Natural Gas business has declared force majeure due to severe flooding, according to a company spokesman on Monday.Infomation Guide Nigeria

Force majeure is a common clause in contracts that releases both parties from liability or obligation when an event or circumstance beyond the parties’ control, such as a war, strike, riot, crime, epidemic, or sudden legal change, prevents one or both parties from fulfilling their contractual obligations.

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According to Reuters, the statement could exacerbate Nigeria’s liquidity crunch and reduce global gas supply, as Europe and others try to replace Russian exports following the February invasion of Ukraine.

All of NLNG’s upstream gas suppliers had declared force majeure, compelling the company to do so as well.

“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,” spokesperson Andy Odeh said.Jamb Result 

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Emediong Ekpe

Emediong Ekpe is a graduate of English. A professional Sports journalist/analyst, and a spoken word artist. He is passionate about decimating information and putting smiles on people's faces via news writing.

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