Nigeria LNG’s Force Majeure Status, According to Portugal’s Galp, Might Affect Supply Chains.
Portugal’s oil and gas company Galp Energia said it may face additional sourcing disruptions after Nigeria LNG declared force majeure due to a widespread flooding.
Galp Energia said in a statement it had received a notice from Nigeria LNG (NLNG), its main natural gas supplier, about the force majeure but said “no information was provided to support an assessment of potential impacts”.
Portugal’s environment and energy minister Duarte Cordeiro said last month the southern European nation could face supply problems this winter if Nigeria does not deliver all the LNG it is due to.
The declaration of force majeur could worsen Nigeria’s cash crunch and will curtail global gas supplies as Europe and others struggle to replace Russian exports due to the invasion of Ukraine in February.