NLNG: Bonny Island plant still in operation despite force majeure, supply challenges

The Nigeria Liquified Natural Gas (NLNG) Limited says its Bonny Island plant is still active, despite a force majeure declared in October 2022 and feed gas supply challenges.

Andy Odeh, general manager, external relations and sustainable development, NLNG, made this known in a statement on Monday in Lagos.

Feed gas is dry natural gas that is used as raw material for liquefied natural gas, petrochemicals, and gas-to-liquids plants.

In October, gas exports from the NLNG were disrupted by widespread floods.

But Odeh said the plant continued to produce liquefied natural gas (LNG) and liquefied petroleum gas (LPG) commensurate with the feed gas it received from its upstream gas suppliers.

“In addition to ensuring steady operation, NLNG remains committed to its culture of transparency and maintains consistent communication with key stakeholders on developments in the upstream sector,” he said.

“The company is closely monitoring the resolution of supply challenges by all relevant parties.”

NLNG’s supply challenges come at a time when there is heightened need for gas in Europe due to the winter season.

Nigeria has been a major supplier of LNG to Europe over the past year, helping to partially fill the gap left by Russia’s supply cuts.

According to the World Economic Forum, due to unreliable supply from Russia and prospects of increased China demand, the European Union could face a shortage of 30 billion cubic metres of natural gas in 2023.

It said even though Europe made an “impressive progress” in 2022 reducing its reliance on Russian gas supplies and reaching optimal gas storage, there is no guarantee that the continent’s mild winter temperatures will continue.