Gas scarcity looms as NLNG shuts operations over flooding

Gas scarcity looms as NLNG shuts operations over flooding

The Nigeria Liquefied and Natural Gas (NLNG) Company has declared force majeure because of the flood ravaging the country which has disrupted supply, a spokesman for the company said on Monday.

“The notice by the gas suppliers was a result of high flood water level in their operational areas, which has led to a shut-in of gas production which has caused significant disruption of gas supply to NLNG,” spokesperson Andy Odeh said, according to Reuters.

Odeh said NLNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure.

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NLNG said all of its upstream gas suppliers had declared force majeure, forcing it to make the declaration as well.

Force majeure, a common clause in contracts, essentially frees both parties from liability or obligation when a circumstance beyond the control of the parties like war, crime, epidemic or sudden legal changes prevents one or both parties from fulfilling their obligations under the contract.

Floods have hit parts of Nigeria destroying houses and farmlands in the last two months with the National Emergency Management Agency (NEMA) saying that about 2.5 million persons were affected and over 603 persons killed by the flooding caused by torrential rainfall of late.

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.