- NLNG has declared force majeure due to widespread flooding.
- NLNG would try to mitigate the impact of this force majeure
The Nigeria LNG Limited (NLNG), a liquefied natural gas-producing company, has declared force majeure due to widespread flooding that has disrupted supply across the country. According to speculations, Nigeria’s cash crunch could worsen global gas supply as the European bloc tries to replace Russian exports due to the Russian invasion of Ukraine in February.
NLNG said all of its upstream gas suppliers had declared force majeure, leaving it with no option but to make the declaration. According to Andy Odeh, the spokesperson, “The notice by the gas suppliers was as 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,” However, He added that NLNG would try to mitigate the impact of this force majeure upon determining the extent of the disruption.
This disruption is attributed to flooding caused by the release of water from a dam in Cameroon and the hefty rains. According to officials, it could persist till November.