Sopuruchi Onwuka

The Nigerian Liquefied Natural Gas (NLNG) Limited has declared crisis in its operations following the inability of its gas suppliers to the flows.

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As a result, the Africa’s gas liquefaction and supply factor has declared emergency clause in its supply contracts with offtakers, warning that the issues of flooding in the Niger Delta has impacted flow of feedgas to its process plants.

Company spokesman, Mr Andy Odeh, narrated in a public statement that NLNG has declared force majeure on product supplies from its production facilities on Bonny Island.

He said the notice followed the declaration of force majeure by all its upstream gas suppliers.

The notice by the gas suppliers was a result of high flood water levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG, Mr Odeh buttressed.

“Consequently, NLNG activated force majeure clauses in accordance with the Sales and Purchase Agreements (SPA) provisions.

“NLNG is currently reviewing the situation with gas suppliers to ascertain the extent of the disruption to its operations but would, as a reasonable and prudent operator, endeavour to mitigate the impact of the force majeure to the extent reasonably possible,” he said.

The Oracle Today reports that Nigeria, along with many countries of the world, is suffering its worst flooding disaster in the year as the planet witnesses extreme swings in weather conditions which scientists attribute to climate change.

Official records indicate rising number of deaths and scale of devastation as states and regions of the federation come under overwhelming disaster.

According to interim figures from the Minister for Disaster Management over 600 people have been reported dead, some 1.3 million people have been displaced, and more than 200,000 homes have been destroyed. Also, large areas of farmland have been destroyed.

Agencies of government in charge of weather forecast continue to warn that flooding is expected to continue until the end of November due to unusually heavy rains and climate change.

Government has also warned of very severe health and economic consequences of the prevailing disaster, pointing at increased spread of disease, and disruption in supply food and fuel.

Minister for Humanitarian Affairs and Disaster Management, Sadiya Umar Farouk, weekend called on local authorities to evacuate people living in the most high-risk areas, assuring that government was already providing food and other support to those affected, she said.

Mrs Farouk said 27n out of 36 states of the country have been impacted, lamenting that many state governments did not prepare for the flooding despite concerted efforts and early warnings,.

Nigeria’s meteorological agency has warned that the flooding could continue until the end of November in some states, including Anambra, Delta, Rivers, Cross River and Bayelsa. These states form the Niger Delta petroleum production hub which houses the country’s upstream oil and gas infrastructure and facilities.

NLNG stated that its upstream gas suppliers declared in their force majeure that facilities in some of these areas were shut due to flood impact.