NLNG declares force majeure over NIMASA’s blockade

Nigeria LNG LogoNigeria’s export of gas has suffered a major setback as the Nigeria Liquefied Natural Gas (NLNG) said yesterday it had declared force majeure on its exports of liquefied natural gas as a blockade by the Nigerian Maritime Administration and Safety Agency (NIMASA) over a tax dispute, which entered its second week.

The blockade, which has prevented LNG tankers from accessing the company’s loading terminal in Bonny Island of Rivers State, is due to a long-standing dispute between the company and the maritime regulator over the payment of duties on freight and exports.

NLNG said in a statement emailed to the Wall Street Journal that it had declared force majeure effective from June 28.

A force majeure is declared when a company is unable to fulfil its contractual obligations to deliver exports due to circumstances beyond its control.

 

Information from This Day was used in this report.

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