The product supplies from its production facilities on Bonny Island, Nigeria following the declaration of force majeure by all its upstream gas suppliers.
The company said its declaration followed statements of force majeure from its suppliers. The gas producers gave the notice as 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”.
NLNG General Manager for External Relations, Andy Odeh explained the company had declared force majeure in line with its Sales and Purchase Agreements (SPA).
“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.
The company is “currently reviewing the situation with gas suppliers to ascertain the extent of the disruption to its operations”. NLNG will “endeavour to mitigate the impact of the force majeure to the extent reasonably possible”.
NLNG covers six trains at Bonny Island, with the seventh train under construction. The facility is Nigeria’s largest consumer of gas, consuming around 3.5 billion cubic feet per day.
Three joint ventures provide gas to NLNG, Shell Petroleum Development Co. (SPDC), Total Exploration and Production Nigeria (TEPNG), and Nigerian Agip Oil Co. (NAOC).
According to Nigerian National Petroleum Corp. (NNPC) data from August, SPDC is the main supplier of gas to NLNG.