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Nigeria LNG declares force majeure

LNG Industry,


A long standing dispute with Nigeria LNG and the Nigerian Maritime Administration and Safety Agency (NIMASA) over alleged unpaid taxes has led to a naval blockade of its export terminal, which has now run into a second week.

The company declared force majeure from June 28, because it is unable to meet its contractual obligations due to circumstances beyond its control.

NIMSA initially blockaded the company’s Bonny Island terminal on Friday June 21st with two vessels. The NLNG vessel, LNG Imo and one chartered vessel, Torm Thames, are stuck in the terminal and another Nigeria LNG vessel, LNG Oyo is still waiting outside in the Bonny Channel.

NIMASA issued ship detention orders on June 22nd for three Nigeria LNG vessels, LNG Enugu, LNG Oyo and LNG Imo, which bars them form entering or leaving the Bonny terminal.

In a statement released last week the company said, “The potential implications of this current action by NIMASA on NLNG operations are enormous and would impact negatively on its international LNG buyers, the international financial market, Nigeria to which NLNG contributes 4% of the country’s GDP, its Shareholders and the investment climate in Nigeria, let alone the reputational impact this may have on Nigeria’s image within the international investment community.”

Written by Peter Farrell.

Read the article online at: https://www.lngindustry.com/lng-shipping/02072013/nigeria-lng-declares-force_majeure_210/


 

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