NLNG export facility on Monday declared force majeure on its supplies citing disruption by the recent flooding in Delta State did to its feed gas suppliers’ production.
Force majeure absolves companies from liabilities of contractual obligations due to factors outside their control.
According to the spokesperson of the company, Andy Odeh, the company was forced to make the declaration after its upstream gas suppliers had declared force majeure.
“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,” Reuters quoted him as saying.
Although he said NLNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure, it was unclear how long the force majeure will last.
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Flooding in different parts of Nigeria have left over 600 people dead and more than a million people displaced. The floods have been caused by torrential rains due to climate change.
Last two weeks, fuel queues resurfaced in Abuja with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) blaming the scarce distribution of petroleum products on vehicular movement restriction due to floods. The disaster has submerged farmland across states, threatening massive food security.
Source: The Premium Times
