A London court has ruled that Nigeria LNG (NLNG) must pay $380 million in compensation to global commodity traders Vitol and Glencore for failing to deliver contracted liquefied natural gas (LNG) cargoes.
According to court documents cited by Reuters, the case stemmed from a supply agreement between NLNG and trading firm Taleveras, which was meant to receive 19 LNG cargoes between 2020 and 2021. Taleveras had pre-sold some of these shipments to Vitol and Glencore, but when NLNG failed to fulfill its contractual obligations, the two companies took legal action.
After a series of court battles, London’s High Court and Court of Appeal ruled against NLNG, rejecting its appeal and upholding the decision that the company must pay approximately $260 million to Vitol and $120 million to Glencore.
Reactions and Market Impact
NLNG, a joint venture in which Nigeria’s state-owned oil company NNPC owns 49% alongside Shell, TotalEnergies, and Eni as minority stakeholders, has yet to make an official statement, stating that it is still reviewing the judgment.
Shell and Eni declined to comment, while TotalEnergies did not respond to media inquiries. Similarly, Taleveras, founded by Nigerian businessman Igho Sanomi and now based in Dubai, has not issued any public statements regarding the ruling.
Legal Disputes in the Global LNG Market
This case is part of a wider trend of legal battles in the energy sector, where buyers have sued suppliers for failing to meet contractual obligations. During the COVID-19 pandemic, LNG prices dropped significantly before surging in 2022 following Russia’s invasion of Ukraine, leading some producers to allegedly divert supplies to more profitable markets.
Notably, Shell and BP previously took legal action against U.S. gas exporter Venture Global LNG over similar non-delivery claims.
A full written judgment in the NLNG case is expected in the coming weeks, shedding further light on potential financial and contractual implications for the company.
