MEDIATRACNET
Nigeria LNG Limited (NLNG) has declared force majeure on product supplies from its production facilities on Bonny Island.
The company said the declaration followed the notification by all its upstream gas suppliers.
The notification by the gas suppliers was blamed on the high flood water levels in their operational areas, which has led to a shut-in of gas production by the companies.
The General Manager, External Relations and Sustainable Development, NLNG, Andy Odeh, the stoppage of gas production caused significant disruption of gas supply to NLNG.
Consequently, he said the NLNG was compelled to activate force majeure clauses in accordance with the Sales and Purchase Agreements (SPA) provisions.
Force Majeure is a provision in a contract that allows parties to reschedule their obligations in the event of unforeseen extraordinary developments that directly prevents one or both parties from performing.
Odeh said the NLNG was currently reviewing the situation with gas suppliers to ascertain the extent of the disruption to its operations.
“As a reasonable and prudent operator, we will endeavour to mitigate the impact of the force majeure to the extent reasonably possible,” he said.