Nigeria LNG Declares Force Majeure As Flooding Disrupts Gas Supply

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Nigeria LNG Ltd. declared force majeure on shipments from its Bonny Island liquefied natural gas facility after supplies were cut off by flooding.

“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 significant disruption of gas supply to NLNG,” company spokesman Andy Odeh said by email Monday.

The announcement comes as NLNG, which can produce 22 million tons of LNG a year, was already operating at reduced capacity due to difficulties securing adequate feedstock. The company is a joint venture between the state-owned Nigerian National Petroleum Co., Shell Plc, TotalEnergies SE and Eni SpA. The shareholders are also the plant’s main providers of gas.

NLNG is “reviewing the situation with gas suppliers to ascertain the extent of the disruption to its operations,” according to the statement. The company will try to “mitigate the impact of the force majeure to the extent reasonably possible,” it said.