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Force majeure: NLNG says Bonny plant still operational 

The Nigerian Liquefied Natural Gas (NLNG) Limited revealed that despite announcing a force majeure in its bonny island operations its Bonny Island plant is still operational. 

This was disclosed in a statement by its General Manager, External Relations and Sustainable Development, Mr Andy Odeh, on Friday. 

Operational 

The company said that its operation at its plant on Bonny Island is ongoing, despite a Force Majeure that is still in effect. 

They added that the Force Majeure, caused by the unavailability of major liquids evacuation pipelines, was due to acts of sabotage and vandalism and had not halted the overall operations of the company, adding: 

  • “Our attention has been brought to a report on 17th August 2023, titled, “NLNG prolonged shutdown threatens gas production, published in one of the national newspapers.” 

They said the report is false and misleading, saying that NLNG remained committed to collaborating with key stakeholders to minimize the impact of the consequent gas supply shortage, adding: 

  • The plant continues to produce LNG and LPG commensurate to the feed gas it receives from its upstream gas suppliers. Its cargo loading operation also continues without interruption. 
  • “The latest cargo from the Bonny plant sailed on August 17, 2023, to the St. Croix, U.S. Virgin Islands, carrying 140,000 M3 of LNG,”. 

Backstory 

Nairametrics reported last week that Liquefied Natural Gas (NLNG) Limited said that the force majeure it declared in October 2022 will continue. 

This is according to the company’s External Relations General Manager, Andy Odeh, said: 

  • “The force majeure still subsists as the unavailability of upstream gas suppliers’ major liquids evacuation pipelines, occasioned by sabotage and vandalism, still impacts feed gas supplies. NLNG continues to collaborate with its customers to minimize the impact of the consequent gas supply shortage.” 

NLNG has a production capacity of 22 million tons per annum and delivers most of its shipments to clients in Europe including Galp and Endesa with whom it has long-term contracts. 

It also operates over 70 spot agreements across major LNG markets. 

In October 2022, Nairametrics reported that NLNG had declared a force majeure on its 22.2 million ton per year Bonny LNG export facility due to widespread flooding that disrupted supply. 

At the time, the country experienced one of its worst floods in a decade, resulting in the loss of hundreds of lives and destruction of properties across 28 states. 

At the time of the declaration of a force majeure, Odeh had 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 decline”

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