The Nigeria Liquified Natural Gas (NLNG) has disclosed that the Force Majeure on LNG cargo for export that it declared in October 2022, still subsists due to the activities of vandals and sabotages who have damaged pipelines from gas fields, leading to the disruption of some LNG gas production, delivery, shipment from the Bonny Island facility.
This was confirmed in a statement EnergyDay obtained from Andy Odeh, NLNG, General Manager, External Relations and Sustainable Development on Wednesday.
According to him, “The Force Majeure still subsists as the unavailability of upstream gas suppliers’ major liquids evacuation pipelines, occasioned by sabotage and vandalism, still impacts feedgas supplies to NLNG.
He noted that the NLNG will continue to collaborate with its customers to minimise the impact of the consequent gas supply shortage.
EnergyDay’s check showed that following the impacts of the disruption of liquids evacuation pipelines, feed gas supplies to NLNG have reduced LNG shipments to Europe.
NLNG is a major supplier of natural gas to Europe, particularly helping to partially plug the gap created by the loss of gas supply due to the ongoing war between Ukraine and Russia.
The EU imports 14% of its total LNG supplies from Nigeria, with the potential to more than double this, no thanks to the supply crisis posed by security and sabotage in the oil-producing communities in Nigeria.
However, security issues and pipeline vandalism have limited Nigeria’s gas output, leaving the Nigeria LNG Ltd’s terminal at Bonny Island operating at 60% capacity.
NLNG’s train-6 LNG export facility has a capacity of 22.5 million mt/year (31 Bcm/year), while it is working on expanding its capacity to 30 million mt/year upon the completion of train 7.
European Commission Executive Vice-President Margrethe Vestager during a visit to Nigeria last year said the EU is seeking additional gas deliveries from Nigeria and other alternative sources.
She said that the EU is looking at “all options” in collaboration with the Nigerian Government to increase the supply of LNG to Europe, as Brussels continues its push to engage with its gas supply partners amid the standoff between Russia and the West over Ukraine.
Nigeria is a key LNG supplier to Europe and in 2021 exports amounted to 12.63 Bcm, according to data from S&P Global Platts Analytics.
The biggest buyers as at 2021, were Spain with 49 cargoes supplied — or 4.3 Bcm of gas equivalent — France (38 cargoes), Portugal (34 cargoes), and Turkey (15 cargoes), the data showed.
Several LNG cargoes were also delivered last year each to Croatia, Greece, Italy, the Netherlands, and the UK.