Why NLNG declared force majeure - ITREALMS

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Some details have begun to emerge as for the reason the Nigeria LNG Limited (NLNG) declared force majeure on product supplies from its production facilities on Bonny Island, Nigeria following the declaration of force majeure by all its upstream gas suppliers, reports ITREALMS.

General Manager, External Relations and Sustainable Development, Mr. Andy Odeh, told ITREALMS that 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.

"Consequently, NLNG activated force majeure clauses in accordance with the Sales and Purchase Agreements (SPA) provisions," he said.

NLNG is currently reviewing the situation with gas suppliers to ascertain the extent of the disruption to its operations but would, as a reasonable and prudent operator, endeavour to mitigate the impact of the force majeure to the extent reasonably possible.