The Nigeria Liquefied and Natural Gas (NLNG) Company has declared force majeure because the flooding ravaging Nigeria has disrupted supply, the company said on Monday.
“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,” Reuters quoted spokesperson Andy Odeh to have said.
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.
The shut-in will worsen Nigeria’s cash crunch and shrink global gas supply as Europe and others struggle to replace Russian exports due to the invasion of Ukraine in February, the newswire reported.
Odeh said NLNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure.
Floods have hit parts of Nigeria 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.
Channels Television reports that Houses, farmlands, bridges and critical infrastructure have been submerged in Lagos, Yobe, Borno, Taraba, Adamawa, Edo, Delta, Kogi, Niger, Plateau, Benue, Ebonyi, Anambra, Bauchi, Gombe, Kano, Jigawa, Zamfara, Kebbi, Sokoto, Imo, Abia States, and the Federal Capital Territory.