The Nigeria Liquefied Natural Gas Limited (NLNG) says its operations were still ongoing, especially, in Bonny Island where its gas liquefaction and export plant is located and not affected by flooding as erroneously reported in some news media.

NLNG’s General Manager, External Relations and Sustainable Development, Andy Odeh told Kristina Reports over the phone on Thursday, October 20, 2022 that none of its assets (facilities and pipelines) were affected by flood, clarifying that the force majeure it declared was sequel to the same declared by its upstream gas suppliers.

“Our facilities are not affected and our pipelines are okay but due to the shutdown declared by our upstream partners, we also had to declare a force majeure as such we are currently running on limited capacity.”

The gas firm had announced a force majeure on Monday, October 17, 2022, saying that its operations at its facilities have been shut down due to flooding challenges affecting its upstream partners’ facilities but some media reports had it that its (NLNG) facilities were affected by the flood.

Kristina Reports checks at both the company’s Industrial Area (IA), Residential Area (RA), Maintenance Yard and Finima Airstrip, all in Bonny Island, shows that normal operations, though at limited capacity, were ongoing, as well as, its Train 7 project site where workers of both Saipem Contracting Nigeria Limited and Daewoo Engineering and Construction Nigeria Limited were also working.

Odeh assured that the company’s supplies to the Nigerian domestic gas market and global gas exports would be sustained though at the volume of supplies it has capacity to deliver on in the circumstance.

“Though we can’t be specific with the volume of supplies we can do now in the circumstance, we wish to assure our LPG clients that we are not shutting down.”

“A vessel just left Bonny for Lagos with LPG, and also note that the flood level was not rising any more according to information we have received.”  

“All the gas we are getting are being exported so there is no need to panic on LPG. The flood is a natural occurrence. The force majeure won’t affect volume of exports. We understand that we have an obligation to our partners and would do what we can to ensure that.”  

A statement later posted on its virtual platforms further clarifies as follows:

1. The Company’s plant is in operation though at a limited capacity, due to reduced gas supply from some of its upstream gas suppliers.
2. None of NLNG’s assets on Bonny Island or in any of its host communities are impacted by the flood. The Force Majeure is as a consequence of a similar notice by Upstream Gas Suppliers due to the impact of flood in their production facilities.
3. NLNG is working with all critical stakeholders on mitigating the impact on product deliveries. 

It adds that “NLNG continues to monitor the situation with Upstream Gas Suppliers and is evaluating the impact of the flood on its business”.

This clarification is coming at a very auspicious time as the force majeure announced by NLNG was misconstrued and gave life to apprehension across the domestic gas market in Nigeria as citizens panicked given that gas pricing regime across the country was already witnessing some uncertainty.

Some social media platforms monitored by Kristina Reports showed citizens advising others to purchase extra gas supplies surmising that there would be an imminent spike in price due to scarcity or non-availability owing to the shutdown.