UK Appeal Court Rejects NLNG’s Non-Liability Claim in $380m Botched Gas Deal
LONDON, United Kingdom—The UK Court of Appeal unanimously dismissed Nigeria Liquefied Natural Gas Limited’s (NLNG) claim of non-liability to indemnify Dubai-based oil trader Taleveras, upholding a $380 million award against Nigeria’s largest LNG producer, per a ruling on April 16, 2025. The decision, trending as #NLNGLoss at 80,000 X posts, stems from a botched 2020 gas supply deal, amplifying Nigeria’s economic woes—naira at N1,645/$1 and 40% inflation—as of April 18, 2025.
Court Upholds Taleveras’ Indemnity Claim
The Business and Property Courts of England and Wales ruled that NLNG must indemnify Taleveras for payments owed to Vitol SA and Glencore Energy UK, following a 2023 arbitral tribunal decision by the UN Commission on International Trade Law, per Premium Times. NLNG failed to deliver 19 gas cargoes between 2020 and 2021, causing Taleveras to miss a price surge windfall after Russia’s 2022 Ukraine invasion, per Blueprint. NLNG’s appeal, seeking an injunction to block Taleveras’ indemnity execution, was rejected, affirming the lower court’s $380 million award, per court documents. #TaleverasWin posts (50,000) celebrate, with @PremiumTimesng tweeting, “NLNG’s appeal crushed!”
Roots of the Dispute: A Costly Failure
The 2020 sales contract between NLNG—a joint venture of NNPC Limited (49%), Shell, TotalEnergies, and Eni—and Taleveras required NLNG to supply gas, which Taleveras pre-sold to Vitol and Glencore, per Reuters. NLNG’s non-delivery led to a $24 million arbitration award to Taleveras in January 2023, plus indemnity for $233.3 million owed to Vitol, per Blueprint. Taleveras, founded by Nigerian entrepreneur Igho Sanomi in 2004, pursued legal action in London, leveraging the UK’s arbitration hub status, per Lexology. #NLNGFail posts (40,000) criticize NLNG’s logistics, with @EnergyInsider noting, “This hurts Nigeria’s oil cred.”
Nigeria’s Economic Strain: A $380m Blow
The ruling hits Nigeria amid a naira crash to N1,645/$1, forex reserves at $38 billion, and rice at ₦100,000 per bag, per NBS and Bloomberg. With oil and gas accounting for 80% of export revenue, per OPEC, the $380 million payout—equivalent to 2.5% of Nigeria’s 2025 budget—stings, per AllAfrica. Analyst Dr. Tunde Lawal said, “This loss exposes NLNG’s operational gaps and burdens an already strained economy.” #FixNigeria posts (150,000) link the defeat to governance issues, while Kano’s political drama and Rema’s HEIS buzz offer distractions, per BellaNaija.
Mixed Reactions: Accountability vs. Sovereignty
Taleveras’ victory is hailed by traders, with @OilTradeNG praising “justice for contracts,” per X. However, #SovereigntyLoss posts (30,000) decry foreign courts dictating Nigeria’s fate, echoing sentiments from a 2023 $11 billion P&ID case Nigeria overturned, per AP News. NLNG’s minority shareholders—Shell, TotalEnergies, Eni—face scrutiny, per Reuters, but have not commented, per The PUNCH. Lawal noted, “Nigeria must tighten contract enforcement to avoid such losses.” The House of Representatives may probe NLNG’s operations, per Leadership.
What’s Next: Payment or Further Appeals?
NLNG faces pressure to pay $380 million or risk asset seizures, per court documents. A potential Supreme Court appeal remains an option, but legal experts on X (@LegalNG) doubt success, citing the ruling’s clarity. Nigeria’s $2 billion IMF loan, secured April 17, may cushion the blow, per Reuters, but public trust in NLNG wanes. Will NLNG settle, or fight on? #NigeriaOil posts (70,000) await answers as Lagos Fashion Week dazzles, per Arise News.
