The Nigeria Liquefied Natural Gas (NLNG) Limited, has declared a force majeure on its 22.2 million ton per year Bonny LNG export facility.
The development is coming as Nigeria battles floods, with no fewer than 500 people reported to have been killed and property worth billions of naira destroyed.
The floods which have affected 28 out of the 36 states of the federation and some parts of Abuja, have reportedly displaced an estimated 1.4 million people and destroyed thousands of hectares of farmland, thereby worsening fears of disruption of food supply in Nigeria.
The NLNG in a statement by its General Manager, External Relations and Sustainable Development, Mr Andy Odeh, said “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 NLNG.’’
He noted that NLNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure.
NLNG’s supply has already been limited due to massive oil theft that has slashed output from what is typically Africa’s largest exporter.
The declaration could worsen Nigeria’s financial crisis and put further pressure on the global gas supply, as Europe and other major economies struggle to replace Russian gas exports.
