Floods threaten Nigeria’s liquified natural gas supplies to Europe

Nigerian liquefied natural gas company Nigeria LNG has declared force majeure — signalling that it may not be able to meet contractual obligations after widespread flooding disrupted gas supplies.

It is a move that could spell danger for the country’s already struggling economy and will likely slow gas supply to Europe as it struggles to replace Russian exports following the invasion of Ukraine.

“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,” spokesperson Andy Odeh said.

Portuguese oil and gas company Galp Energia said in a statement it had received a notice from Nigeria LNG, its main natural gas supplier, about the force majeure but said: “No information was provided to support an assessment of potential impacts”.

It said it “may, however, result in additional sourcing disruptions to Galp.”

The announcement comes as rampant theft of Nigeria’s crude oil saw export levels in August slump to their lowest in 40 years.

Lagos relies on fossil fuel exports for 90% of its foreign exchange and around half its budget.

Flooding in Nigeria has killed more than 600 people, displaced 1.4 million and destroyed roads and farmland.

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.

Culled from: https://www.euronews.com/2022/10/18/floods-in-nigeria-threaten-liquified-natural-gas-supplies-to-europe

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