Nigeria: Firm unable to ship gas after floods

ABUJA, Nigeria (HPD) — A major energy company in Nigeria says it can’t deliver natural gas as its contracts promise because heavy flooding hampered its operations, raising fears about whether Africa’s largest economy will be able to meet growing local demands. and international companies during an energy crisis caused by the Russian invasion of Ukraine.

Nigeria LNG Limited — NLNG — declared a “force majeure” this week, meaning it is unable to meet its contractual obligations to supply the world’s fuel used to generate electricity, heat homes and power factories, after flooding caused a “significant disturbance of gas supply”. About 3.8% of monthly global supplies could be affected, which could push up prices, Rystad Energy said.

NLNG spokesman Andy Odeh said Thursday that the company’s plant “continues to operate, albeit at limited capacity, due to reduced supply from its suppliers.” The company “is working with all critical stakeholders to mitigate the impact on product delivery,” he said in a statement, without giving details on exports.

The NLNG is a joint venture between the Nigerian government, which is the largest shareholder, and energy giants such as Shell and Italy’s Eni. With the capacity to produce more than 20 million tons of liquefied natural gas a year, it is the largest gas company in Nigeria, but its production capacity was only 68% due to fuel theft and pipeline vandalism, which have plagued the country.

With Europe facing an energy crisis in the wake of Russia’s invasion of Ukraine, Nigeria and other African countries have agreed to work to meet Europe’s growing gas needs.

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