Page 9 - GLNG Week 42 2022
P. 9
GLNG ASIA GLNG
NLNG’s force majeure
declaration leads Galp to
assess impact on supplies
SUPPLY PORTUGAL’S oil and gas company Galp Ener- investment bank, had identified Portugal and
gia indicated on October 17 that it was assessing the UK-based major Shell as the parties that
the impact on its supply chain after receiving faced the most risk as a result of the shutdown
notice that the Nigeria LNG (NLNG) consor- at NLNG.
tium had declared force majeure on deliveries. Galp is contracted to buy about 1mn tonnes
In a statement, the company reported that per year (tpy) of LNG from NLNG’s first three
NLNG had notified it of the declaration, which production trains under a 10-year deal signed in
affected both LNG and natural gas liquids 2020. It has also arranged to purchase 1.42mn
(NGLs), following widespread floods in Nige- tpy of remarketed LNG from Trains 4 and 5.
ria. The consortium reported in its notice that it NLNG exported 18 cargoes of LNG in Sep-
had interrupted shipments due to the “extensive tember, according to Refinitiv data cited by
flooding being experienced in Nigeria, causing Reuters. It will not be able to match that figure in
a substantial reduction in the production and October, as the flooding that triggered the dec-
supply of liquefied natural gas and natural gas laration of force majeure led the consortium’s
liquids,” Galp said. upstream suppliers to curtail production.
It went on to say that it was preparing for the Equity in the NLNG consortium is split
possibility that its own LNG supplies might be between Nigerian National Petroleum Co. Ltd
disrupted, even though it did not have any con- (NNPCL), with 49%; Shell (UK), with 25.6%;
crete information to confirm this. “At this stage, TotalEnergies (France), with 15%; and Eni
no information was provided to support an (Italy), with 10.4%. State-owned NNPCL serves
assessment of potential impacts from this event, as operator of the group.
which may however result in additional sourcing The consortium brought its first production
disruptions to Galp,” the statement said. train on stream in 1999 and now has six pro-
NLNG, the operator of Nigeria’s only large- duction trains capable of turning out a total of
scale gas liquefaction plant, is a major supplier of 22.5 mn tpy. The complex’s installed capacity
LNG to Portugal. In 2021, it accounted for about is now set to rise to 30mn tpy as a result of the
half of the LNG delivered to that country – which Train 7 project, which envisions the construc-
is, along with other EU member states, nervous tion of a seventh production train that can turn
about securing adequate fuel supplies ahead of out 4.2mn tpy, as well as the debottlenecking of
the coming winter. Reuters noted on October existing trains, which will add another 3.4mn tpy
18 that Jefferies, a New York-headquartered of capacity.
Week 42 21•October•2022 www. NEWSBASE .com P9
