Nigeria LNG declares force majeure amid worst flooding in a decade
Flooding has killed more than 600 people and displaced 1.4-million
17 October 2022 - 21:20
by Libby George
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Vehicles are seen submerged in flood water at a petrol station in Lokoja, Nigeria, October 13 2022. Picture: AFOLABI SOTUNDE/REUTERS
Lagos — Nigeria LNG declared force majeure because of widespread flooding that has disrupted supply, a spokesperson for the company said on Monday.
The declaration could worsen Nigeria’s cash crunch and will curtail global gas supply as Europe and others struggle to replace Russian exports due to the invasion of Ukraine in February.
Nigeria LNG said all of its upstream gas suppliers had declared force majeure, forcing it to make the declaration as well.
“The notice by the gas suppliers was a result of high floodwater levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to Nigeria LNG,” spokesperson Andy Odeh said.
Odeh said Nigeria LNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure.
Flooding in Nigeria has killed more than 600 people, displaced 1.4-million and destroyed roads and farmland. It’s the worst flooding the West African nation has seen in a decade. Officials have warned that the flooding, caused by unusually heavy rains and the release of water from a dam in Cameroon, could continue into November.
The scale of the disaster ... is colossal,” said Mustapha Habib Ahmed, director-general of the National Emergency Management Agency.
Fuel shortage have been reported in the capital, Abuja.
Nigeria LNG’s supply had already been limited due to prolific oil theft that has slashed output from what is typically Africa’s largest exporter. The company had exported roughly 18 cargoes in September, according to Refinitiv data.
Nigeria relies on fossil fuel exports for 90% of its foreign exchange and roughly half its budget. Crude oil exports fell below 1-million barrels per day (bpd) on average in August, the lowest level since the 1980s, due to theft that has exceeded 80% on certain pipelines.
Crushing fuel subsidy costs have also kept Africa’s most populous nation from benefiting from this year’s surge in oil prices.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Nigeria LNG declares force majeure amid worst flooding in a decade
Flooding has killed more than 600 people and displaced 1.4-million
Lagos — Nigeria LNG declared force majeure because of widespread flooding that has disrupted supply, a spokesperson for the company said on Monday.
The declaration could worsen Nigeria’s cash crunch and will curtail global gas supply as Europe and others struggle to replace Russian exports due to the invasion of Ukraine in February.
Nigeria LNG said all of its upstream gas suppliers had declared force majeure, forcing it to make the declaration as well.
“The notice by the gas suppliers was a result of high floodwater levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to Nigeria LNG,” spokesperson Andy Odeh said.
Odeh said Nigeria LNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure.
Flooding in Nigeria has killed more than 600 people, displaced 1.4-million and destroyed roads and farmland. It’s the worst flooding the West African nation has seen in a decade. Officials have warned that the flooding, caused by unusually heavy rains and the release of water from a dam in Cameroon, could continue into November.
The scale of the disaster ... is colossal,” said Mustapha Habib Ahmed, director-general of the National Emergency Management Agency.
Fuel shortage have been reported in the capital, Abuja.
Nigeria LNG’s supply had already been limited due to prolific oil theft that has slashed output from what is typically Africa’s largest exporter. The company had exported roughly 18 cargoes in September, according to Refinitiv data.
Nigeria relies on fossil fuel exports for 90% of its foreign exchange and roughly half its budget. Crude oil exports fell below 1-million barrels per day (bpd) on average in August, the lowest level since the 1980s, due to theft that has exceeded 80% on certain pipelines.
Crushing fuel subsidy costs have also kept Africa’s most populous nation from benefiting from this year’s surge in oil prices.
Reuters
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