By Bolaji Ajala with Agency Report
The disruption in the supply of Liquefied Natural Gas, LNG in Nigeria and Egypt will curtail shipping rates in both countries as more vessels are poised to compete for fewer cargoes of fuel in the market.
According to a group of market analysts led by Nicolay Dyvik, the supply of LNG in the market will put pressure on shipping rates.
“The market is supply-driven; hence the availability of volumes into the market is going to drive rates,”
“Dedicated vessels for these projects with outages are reportedly made available to the market; hence this is likely to put pressure to LNG spot rates.” He noted.
Chairman of state-run, Egyptian General Petroleum Corporation, Sherif Haddara, had also said that Egypt stopped supplying natural gas to the Segas LNG plant because of rising domestic demand,
According to a statement recently, Nigeria LNG last week canceled an offer to sell an LNG cargo, according to two people with knowledge of the tender.
Royal Dutch Shell Plc declared force majeure on gas supplies to Nigeria LNG as of Feb. 5 after a pipeline leak.
Force majeure is a legal step freeing a company from meeting contract terms for reasons beyond its control.