Nigeria LNG Limited (NLNG), a producer of liquefied natural gas, has been ordered by a London court to compensate Vitol and Glencore, two commodities dealers, $380 million for their failure to deliver contractual cargoes.
Despite having signed LNG supply agreements with the Nigerian gas venture, Taleveras, a trading company that filed a lawsuit against NLNG four years ago, did not get the 19 cargoes that were agreed upon between 2020 and 2021.
NLNG, a major player in global LNG supply, is a joint venture involving Shell, TotalEnergies, Eni, and the Nigerian National Petroleum Company (NNPC) Limited, which holds a 49 per cent stake.
Taleveras had pre-sold part of the cargoes to the Swiss businesses, according to court records, but when deliveries didn’t go through, Vitol and Glencore sued Taleveras, which sparked a legal battle, according to Reuters.
NLNG’s appeal was denied last week, confirming that the corporation must pay around $120 million to Glencore and $260 million to Vitol.
The report said that NLNG responded by saying that it is examining the court’s ruling but declined to comment more.
Requests for comments were not answered by Vitol, Glencore, or Taleveras, while Shell, Eni, and TotalEnergies also declined to comment.
The report said the ruling comes amid broader disputes in the LNG sector, where some producers have been accused of withholding contracted supplies to sell at higher prices on the spot market.
READ ALSO:Â Visa on Arrival Not Scrapped but Upgraded, Tunji-Ojo Clarifies
Similar cases have been seen globally, including arbitration proceedings involving Shell and BP Plc, a British multinational oil and gas company against U.S. exporter Venture Global LNG.
Taleveras, founded in 2004 by Igho Sanomi, a Nigerian businessman, is based in Dubai.
