NLNG resumes full operations

The Nigeria LNG Limited, on Friday, said it had lifted the force majeure declaration placed on its buyers and gas suppliers, following the resolution of the crisis between it and the Nigerian Maritime Administration and Safety Agency. The company, in a statement by its General Manager, External Relations, Dr. Kudo Eresia-Eke, said it lost all its product export capability due to the blockade of access to its terminal by NIMASA on Friday, 21st June 2013. “All incoming and outgoing cargo vessels to the NLNG Bonny Terminal (for LNG and NGL vessels) were stopped, forcing NLNG, as a prudent operator, to significantly reduce production in order to be able to manage the LNG and NGL inventories in the available tankage safely and in an environmentally responsible manner,” the statement said. Following the removal of the NIMASA blockade, NLNG said it promptly commenced activities to restore normal operations, and had since been increasing the production levels, in a gradual manner as necessitated by plant design and safe operating procedures. “As at today, the 6-Train NLNG Bonny complex finally reached its normal operating capacity such that export operations can be declared as being fully normalised. Consequently, the company has declared the current force majeure lifted to both buyers and gas suppliers,” the statement said. The firm lamented that the June 21st blockade was the second in 2013, recalling that the first, which was on May 3, was lifted upon government’s intervention, following which NLNG was directed to pay NIMASA about $159m. This was in settlement of levies allegedly owed NIMASA from October 2009 to May 2013. The NLNG was also asked to continue paying the NIMASA levies. NLNG said, “Dissatisfied, NLNG paid $20m under protest and filed a suit at Federal High Court for the determination of the legality of the government’s directive, as well as NIMASA’s claims. “The court granted NLNG an interim injunction against the Federal Government and all its agencies (including NIMASA) from charging or collecting the NIMASA levies, or blocking access to NLNG facilities or detaining its vessels, until the determination of the Motion on Notice for interlocutory injunction already filed in the case.” It will be recalled that NIMASA had proceeded against the court orders with a blockade of the Bonny Channel, denying entry or exit of ships from the NLNG terminal. “When all efforts to have NIMASA obey the court order proved unsuccessful, the court varied the injunction to enable NLNG to pay NIMASA, still under protest, on the 12th of July 2013, without prejudice to the continuation of the substantive suit. NLNG thereafter made payment, and NIMASA eventually removed the physical blockade by midday of 13th July, 2013,” NLNG said in the statement.” NLNG said the substantive suit was adjourned to Thursday, September 19, 2013. “NLNG, as a law abiding corporate firm, will be guided by the outcome of the judicial process and expects that other parties will do same,” the statement said. Nigeria LNG Limited, a major exporter of liquefied natural gas and natural gas liquids, is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49 per cent), Shell (25.6 per cent), Total LNG Nigeria Limited (15 per cent) and ENI International (10.4 per cent).