Nigerian firm says it can’t ship natural gas after flooding

Oct 19, 2022, 2:02 PM | Updated: Oct 20, 2022, 5:06 am
FILE- A tank farm and oil trucks are half submerged after a downpour at an oil terminal in Lagos Ni...

FILE- A tank farm and oil trucks are half submerged after a downpour at an oil terminal in Lagos Nigeria, on July. 11, 2011. Nigerian state gas company has declared a force majeure after floods hindered gas operations, raising concerns among analysts about the West African nation's capacity to meet local and international demands. (AP Photo/Sunday Alamba, File)

(AP Photo/Sunday Alamba, File)

              FILE- People stranded due to floods following several days of downpours In Kogi Nigeria, on Oct. 6, 2022. Nigerian state gas company has declared a force majeure after floods hindered gas operations, raising concerns among analysts about the West African nation's capacity to meet local and international demands. (AP Photo/Fatai Campbell, File)
            
              FILE- A woman walks along an oil pipeline in Warri, Nigeria, on Jan. 15, 2006. Nigerian state gas company has declared a force majeure after floods hindered gas operations, raising concerns among analysts about the West African nation's capacity to meet local and international demands. (AP Photo/George Osodi, File)
            
              FILE- A tank farm and oil trucks are half submerged after a downpour at an oil terminal in Lagos Nigeria, on July. 11, 2011. Nigerian state gas company has declared a force majeure after floods hindered gas operations, raising concerns among analysts about the West African nation's capacity to meet local and international demands. (AP Photo/Sunday Alamba, File)

ABUJA, Nigeria (AP) — A major Nigerian energy company says it cannot deliver natural gas as promised in its contracts after deadly flooding hindered its operations, raising concerns about whether Africa’s largest economy can meet increased local and international demands during an energy crisis provoked by Russia’s war in Ukraine.

Nigeria LNG Limited, or NLNG, declared a “force majeure” this week, meaning it is unable to fulfill its contractual obligations to supply the fuel used around the world to generate electricity, heat homes and run factories after flooding led to a “significant disruption of gas supply.” About 3.8% of global monthly supply could be affected, risking higher prices, Rystad Energy said.

Andy Odeh, spokesman for NLNG, said Thursday that the company’s plant is “still in operation though at a limited capacity, due to reduced gas supply from some of its upstream gas suppliers.” The company is “working with all critical stakeholders on mitigating the impact on product deliveries,” he said in a statement, without providing more details on exports.

The NLNG is a joint venture between the Nigerian government, which is the majority shareholder, and energy giants including London-based Shell and Italy’s Eni. With capacity to produce over 20 million tons of liquefied natural gas, or LNG, per year, it is Nigeria’s largest gas firm, but its production capacity was only at 68% because of oil theft and pipeline vandalism that has plagued the country.

As Europe faces an energy crisis after Russia sharply reduced natural gas flows during the war in Ukraine, Nigeria and other African countries have agreed to work toward helping meet the European Union’s need for increased gas supplies. Nigeria has Africa’s largest natural gas reserves, but its capacity to meet such demands has come under question, even as European storage levels have managed to reach 92% ahead of the winter heating season and gas prices have fallen lately.

Flooding this year — the worst in a decade — has killed more than 600 people, displaced 1.3 million and “aggravated what was already a bad situation” for the national gas company, said Toyin Akinosho, a Nigeria energy consultant.

Floodwaters also have submerged many of the riverside communities in the oil-rich Niger Delta region where Nigeria’s crude oil facilities are located, threatening the operation of local and international oil companies. Nigeria is a member of the OPEC oil cartel that produces crude for world markets.

Akinosho expressed doubts about how quickly the disruption could be addressed to allow Nigeria to resume shipping gas to the EU, which gets 14% of its LNG imports from the African nation, as well as other buyers in North America, the Middle East and Asia.

Analysts fear that if the disruption in gas supplies persists, it would cause a further decline in government earnings at a time when Nigeria faces a cash crunch caused by declining crude production over the years.

The force majeure may “cause the NLNG markets to tighten further” before winter, when it faces higher demands for gas, said Olufola Wusu, an oil and gas expert who was part of a team that helped review Nigeria’s national gas policy.

“The chances are that if we are unable to meet local demand, it is highly unlikely that we will have sufficient gas to export. And it means that some of our customers may be forced to seek LNG from other suppliers,” Wusu said.

A spokesman for Timipre Sylva, Nigeria’s petroleum minister, declined to speak on the issue.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Capital murder defendant and former U.S. Border Patrol Juan David Ortiz looks around the cou...
Associated Press

Jurors hear ex-Border Patrol agent’s confession in killings

SAN ANTONIO (AP) — Jurors in the capital murder trial of a former U.S. Border Patrol agent have heard a taped interview in which he confesses to the 2018 killings of four sex workers in South Texas. If convicted of capital murder, Juan David Ortiz, 39, faces life in prison without parole because prosecutors are […]
17 hours ago
Associated Press

Police: 180 dogs and cats removed from home by hazmat team

BRICK, N.J. (AP) — Some 180 dogs and cats were removed from a New Jersey home by a hazmat team after officials reported the animals were being kept in “horrible and inhumane conditions,” authorities say. Brick Township police said officers entered the home Friday night and found stacks of animal crates containing dogs and cats, […]
2 days ago
FILE - In this photo taken by an individual not employed by the Associated Press and obtained by th...
Associated Press

Iran morality police status unclear after ‘closure’ comment

CAIRO (AP) — An Iranian lawmaker said Sunday that Iran’s government is “paying attention to the people’s real demands,” state media reported, a day after a top official suggested that the country’s morality police whose conduct helped trigger months of protests has been shut down. The role of the morality police, which enforces veiling laws, […]
2 days ago
Secretary of State Antony Blinken speaks at the J Street National Conference at the Omni Shoreham H...
Associated Press

Blinken vows US support for Israel despite unease over gov’t

WASHINGTON (AP) — Secretary of State Antony Blinken said Sunday the U.S. will not shrink from its unwavering support for Israel despite stark differences with Prime Minister-elect Benjamin Netanyahu and concerns the Biden administration may have about potential members of his incoming right-wing government. Speaking to a left-leaning group that some on the right accuse […]
2 days ago
Associated Press

Farmer: Georgia dog injured saving sheep from coyote attack

DECATUR, Ga. (AP) — A Georgia sheepdog is recovering at home two days after killing a pack of coyotes that attacked his owner’s flock of sheep, farmer John Wierwiller said. Casper, a 20-month old Great Pyrenees from Decatur, fought off a pack of coyotes who were threatening Wierwiller’s sheep farm, he said. The fight lasted […]
2 days ago
Associated Press

Report: Woman attacks 6 deputies at New Orleans airport

Officials say a woman bit, kicked and spat on six sheriff’s deputies while refusing to exit a plane at an airport in Louisiana early Thanksgiving Day, The Times-Picayune/The New Orleans Advocate reported Saturday. Authorities said the 25-year-old woman attacked Jefferson Parish sheriff’s deputies at Louis Armstrong New Orleans International Airport, according to local news reports. […]
2 days ago

Sponsored Articles

Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Nigerian firm says it can’t ship natural gas after flooding