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.

- Advertisements -

Most Popular

Cedar LNG FID pushed back

Canada’s Pembina Pipeline and the Haisla Nation have again postponed a final investment decision on their Cedar floating LNG...

Eni to ship Congo’s first LNG cargo

Italy’s Eni will soon ship the first liquefied natural gas cargo from its Tango floating LNG facility moored in...

Hyundai Samho to build LNG carrier quartet for $1.08 billion

South Korea's Hyundai Samho has secured an order to build four liquefied natural gas (LNG) carriers for about $1.08...

More News Like This

Daewoo E&C installs giant heat exchanger at Nigeria LNG’s seventh train

South Korea’s Daewoo E&C has completed the installation of a giant heat exchanger at the seventh train of Nigeria...

Shell sells Nigerian onshore unit

LNG giant Shell has agreed to sell its Nigerian onshore subsidiary SPDC to Renaissance for up to $2.4 billion. Renaissance...

German firm eyes Nigerian LNG supplies

Germany's Johannes Schuetze Energy Import has signed a memorandum of understanding with Riverside LNG to buy liquefied natural gas...

Nigeria LNG plans maintenance in February or March

Nigeria LNG plans to conduct regular maintenance at its giant Bonny Island liquefaction plant in February or March 2024. The...