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NLNG declares force majeure on gas supplies in Bonny

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The Nigeria Liquefied Natural Gas (NLNG), has declared force majeure on products supplied from its production facilities on Bonny Island in Rivers.

Mr Andy Odeh, NLNG’s General Manager, External Relations and Sustainable Development said this in a statement in Port Harcourt on Tuesday.

It was reported that force majeure is a provision in a contract that frees both parties from obligation if an extraordinary event directly prevents one or both parties from performing

He said the company took the decision following the declaration of force majeure by all its upstream gas suppliers.

“The notice by the gas suppliers was as a result of high flood water levels in their operational areas.

“The increased flood water levels led to the shut-in of gas production which has caused significant disruption of gas supply to NLNG.

“Consequently, NLNG had to activate force majeure clauses in accordance with the Sales and Purchase Agreements (SPA) provisions,” he said.

Odeh said that NLNG was however reviewing the situation with gas suppliers, to ascertain the extent of the disruption to its operations.

According to him, the company is also taking steps to mitigate the impact of the force majeure to a reasonable extent.

nigerianews.com

Desmond Ejibas

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.

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