NLNG prolonged shutdown threatens gas production
The continued shutdown of operations by Nigerian Liquefied Natural Gas Ltd is a looming danger to the country’s annual production of 22 million tonnes of gas, newsmen report. Last week Tuesday, NLNG spokesman, Andy Odeh, said the force majeure it declared in October 2022 due to widespread flooding that disrupted supplies continued.
Force majeure refers to unexpected external circumstances that prevent a party to a contract from meeting obligations. Force majeure is a common clause in contracts, which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic or sudden legal change prevents one or both parties from fulfilling their obligations under the contract.
He added that it had continued to collaborate with customers to “minimise the impact of the consequent gas supply shortage”.
