The Nigeria LNG (NLNG) Limited has declared force majeure because of the nationwide flooding that has disrupted supply.
On Monday, NLNG spokesperson, Andy Odeh, explained that it was forced to take the decision after all of its upstream gas suppliers announced force majeure.
“Force Majeure” is a common contract clause that effectively exempts parties from responsibility or obligation when an extraordinary event or circumstance beyond the parties’ control, such as a war, strike, riot, crime, epidemic, or sudden legal changes, prevents one or both parties from upholding their end of the bargain.
“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,” Mr Odeh said.
He detailed that NLNG was working to mitigate the effect of the force majeure.
The declaration might make Nigeria’s already dire…
