Egypt: BG Group declares force majeure on LNG

Issue 270 - 30 Jan 2014
Diversions of gas to the domestic market forced BG Group on 27 January to issue force majeure notices under its liquefied natural gas (LNG) agreements. In a statement ahead of its 2013 Q4 and full-year results on 4 February, BG said the revised pooling arrangements put in place for 2013 had not been honoured and domestic diversions were at around capacity, close to 1bcf/d. “As a result, BG Group has been unable to meet in full its obligations to deliver gas to Egyptian LNG and, given the current levels of domestic diversions and the continued uncertainty around the level of future diversions, BG Group has served force majeure notices under its LNG agreements to buyers and lenders.

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