(3 minutes read)
Nigeria LNG, a liquefied natural gas-producing company, has declared force majeure (Act of God) because of widespread flooding that has disrupted supply. The company said all of its upstream gas suppliers had declared force majeure as a result of high floodwater levels in their operational areas
Nigeria LNG, a liquefied natural gas-producing company, has declared force majeure (Act of God) because of widespread flooding that has disrupted supply. The company said all of its upstream gas suppliers had declared force majeure as a result of high floodwater levels in their operational areas. Terming it as an Act of God, would enable the company to escape from damages to be paid to its clients who have booked gas from the company for supply.
Flooding in Nigeria has killed more than 600 people, displaced 1.4 million, and destroyed roads and farmlands as reported by www.trendsnafirca.com. The situation is continuing without any let down and it may spill over to November, according to weather forecasts. The supply from the gas wells had already been limited due to widespread theft. Only 18 cargoes were exported in September.
Read Also:
https://trendsnafrica.com/nigeria-steps-up-flood-relief-measures/
https://trendsnafrica.com/nigerian-start-ups-attract-fdi-worth-1-6-billion-in-2021/
https://trendsnafrica.com/world-bank-loan-of-us-750-million-to-nigeria-to-accelerate-reform-process/
Oil and gas exports play an important role in Nigeria’s economy. Close to 90%of Nigeria’s foreign exchange and about half of the country’s budget are derived from the export of fossil fuels. But there are many challenges including infrastructure, which fritter away the fruits of its oil wealth. The most populated nation in Africa keeps taking out loans to service its hefty budget. Because of the declaration of force majeure, many western companies may face supply disruptions. Portugal’s oil and gas company Galp Energia is one among them. Another one is Galp Energia, which also said that its supply source would be affected.
