Due to severe flooding that has hampered supply, the Nigeria Liquefied and Natural Gas firm has declared force majeure, according to a company official on Monday.
A clause known as “force majeure” is frequently found in contracts and, in essence, releases both parties from responsibility or obligation when an extraordinary event or circumstance, such as a crime, riot, war, strike, epidemic, or unexpected changes in the law, prevents one or both parties from upholding their end of the bargain.
According to Reuters, the statement might make Nigeria’s cash crisis worse and would reduce the amount of gas available globally as Europe and other countries seek to replace Russian shipments as a result of the invasion of Ukraine in February.
NLNG claimed that all of its upstream gas suppliers had announced force majeure, compelling it to do the same.
