A force majeure notice received by Golar LNG Ltd from a BP Plc unit seeking to delay taking delivery of a floating LNG facility by a year.
In the LNG sector, the force majeure notice from BP is the latest claim issued. The sector is struggling with the coronavirus spread as well as a seasonal plunge in demand. Both factors have further hammered LNG consumption globally.
Due to the pandemic, BP is expecting a one-year delay. BP currently does not see possibility in reducing the duration of the new timing. To liquefy gas from Greater Tortue Ahmeyim project on the maritime border between Mauritania and Senegal, BP was expected to take delivery of the facility in 2022 and charter it for twenty years.
BP and Golar LNG are in talks to establish the duration of the delay. When companies cannot meet their contractual obligations because of circumstances beyond their control, force majeure is usually invoked.
