Galp: Nigeria LNG force majeure may cause sourcing disruptions

Portuguese energy firm and LNG player Galp said it may face additional sourcing disruptions after Nigeria LNG declared force majeure on shipments from its 22 mtpa Bonny Island plant due to flooding.

Galp said in a statement on Monday that it had received from Nigeria LNG, its main natural gas supplier, a force majeure notice based on the “extensive flooding being experienced in Nigeria, causing a substantial reduction in the production and supply of liquefied natural gas and natural gas liquids.”

“At this stage, no information was provided to support an assessment of potential impacts from this event, which may however result in additional sourcing disruptions to Galp,” the firm said.

Back in 2020, Nigeria LNG and Galp signed a 10-year supply deal for some of the remarketed volumes from NLNG’s trains 1, 2, and 3. The deal is for about 1 mtpa.

The Portuguese firm also has a deal for 1.42 mtpa of LNG from trains 4 and 5, according to GIIGNL data.

Other buyers of LNG volumes produced at the six-train Bonny plant include TotalEnergies, Eni, Vitol, Naturgy, Endesa, Pavilion Energy, and the largest buyer Shell, the data shows.

Nigeria LNG is a venture compromising of the Nigerian National Petroleum Corporation (49 percent), Shell (25.6 percent), TotalEnergies (15 percent) and Eni (10.4 percent).

Besides the six existing trains, Nigeria LNG is also adding the seventh production unit at the Bonny Island plant.

The NLNG Train 7 project consists of the construction of one complete LNG train and one additional liquefaction unit. The project also includes other associated utilities and infrastructures.

The new unit will add around 8 mtpa of capacity to the 22 mtpa Bonny Island facility.

Most Popular

Yang Ming books LNG-powered containerships in South Korea

Taiwan’s Yang Ming Marine Transport has decided to order LNG dual-fuel container vessels from South Korea's Hanwha Ocean as part of its ongoing fleet optimization plan.

Sabah to take stake in Petronas’ third FLNG

SMJ Energy, owned by the Sabah government, has signed a heads of agreement with Malaysian energy giant Petronas to take a 25 percent stake in the latter's third floating LNG production unit.

Japan’s LNG imports drop in June

Japan’s liquefied natural gas (LNG) imports dropped by 2.8 percent in June compared to the same month last year, according to provisional data released by the country’s Ministry of Finance.

More News Like This

Portugal’s Sines LNG import terminal hits new milestones

The Sines LNG import terminal in Portugal has reached two new milestones, according to Portugal’s power and gas firm and LNG terminal operator, REN.

Venture Global launches Calcasieu Pass LNG commercial ops

US LNG exporter Venture Global LNG has launched commercial operations at its Calcasieu Pass LNG terminal in Louisiana, some 68 months from its final investment decision and 38 months after production start.

Perenco secures FSU for Gabon LNG project

London-based oil and gas firm Perenco will deploy a 2003-built steam LNG carrier to serve as a floating storage unit for its LNG export project at Cap Lopez, Gabon.

Adnoc’s XRG wraps up Mozambique deal

Adnoc's investment unit XRG has completed the purchase of Galp’s 10 percent interest in the Area 4 concession of the Rovuma basin in Mozambique, which includes Eni’s Coral South FLNG project.