Trading giants Vitol and Glencore will receive $380 million in compensation after their gas supplier, Taleveras, won a legal case against Nigeria’s sole liquefied natural gas (LNG) producer, Nigeria LNG (NLNG), for failing to deliver contracted cargoes.
The case, heard in London’s High Court and Court of Appeal, is part of a broader trend of lawsuits over LNG non-deliveries after prices soared following Russia’s 2022 invasion of Ukraine. Taleveras sued NLNG—jointly owned by Shell, TotalEnergies, Eni, and Nigeria’s state oil company—four years ago over undelivered cargoes in 2020-2021.
Last week, NLNG’s appeal was rejected, confirming its obligation to compensate Vitol with $260 million and Glencore with $120 million. Taleveras had pre-sold the disputed cargoes to the two traders, leading to legal action when the deliveries fell through. A full written judgment is expected in the coming weeks.
NLNG, which operates Nigeria’s largest LNG plant supplying about 5% of global LNG demand, said it was reviewing the ruling but declined further comment. Shell, Eni, and TotalEnergies also declined to comment.
Taleveras, founded in 2004 by Nigerian businessman Igho Sanomi and now based in Dubai, did not disclose how much compensation it would receive beyond the $380 million awarded to Vitol and Glencore.
The case reflects a wider industry dispute, as some LNG producers, including Shell and BP, have taken legal action against suppliers who failed to honor long-term contracts amid volatile market conditions.
