Why Our Plant Is Operating At Limited Capacity – NLNG

NLNG has explained why its plant is operating at a limited capacity.

Eko Hot Blog reports that the Nigeria LNG (NLNG) plant is operating at a limited capacity due to reduced gas supply from some of its upstream gas suppliers.

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The company made the disclosure in a series of tweets via its Twitter handle on Friday.

It was reacting to reports that it had shut down operations due to the rampaging flood disaster across the country.

The liquefied natural-gas producing firm had on Monday declared a Force Majeure, prompting speculations about its operations.

The declaration impacted Portugal’s oil and gas company Galp Energia because NLNG is its biggest supplier.

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.

On Friday, NLNG clarified that it had not shut down operations as being speculated.

It, however, said it is being forced to operate at a limited capacity because production facilities of upstream gas suppliers are affected by the flood.

The company also noted that none of its assets is impacted by the disaster.

“Our attention has been brought to media reports, following the issuance of a statement declaring Force Majeure on Monday 17th October 2022, that operations at its facilities have been shut down due to flood,” NLNG tweeted.

We are still in operation!

Our attention has been brought to media reports, following the issuance of a statement declaring Force Majeure on Monday 17th October 2022, that operations at its facilities have been shut down due to flood. #NLNG pic.twitter.com/Sh2HHuy37L

— NLNG (@nigeriaLNG) October 21, 2022

“To correct some misinformation on the declaration, we would like to clarify:

“The Company’s plant is in operation though at a limited capacity, due to reduced gas supply from some of its upstream gas suppliers.

“None of NLNG’s assets on Bonny Island or in any of its host communities are impacted by the flood. The Force Majeure is as a consequence of a similar notice by Upstream Gas Suppliers due to the impact of flood in their production facilities.

“NLNG is working with all critical stakeholders on mitigating the impact on product deliveries. NLNG continues to supply LPG to the domestic market for now from the limited production.

“We continue to monitor the situation with Upstream Gas Suppliers and are evaluating the impact of the flood on its business.”

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Some experts have suggested that the disruption in NLNG’s operation could cause a scarcity of cooking gas in Nigeria, thus increasing prices.

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