Because of a leak in the Sabah-Sarawak pipeline, Petronas has declared force majeure on gas supplies to the LNG plant.
According to a news report, Petroliam Nasional Bhd (Petronas) has declared force majeure on supply to its LNG export facility due to a leak at its Sabah-Sarawak pipeline.
According to The Edge, the spill might make the world’s gasoline shortage worse.
Following the spill on September 21, The Edge reported that Petronas has activated the force majeure legal clause, citing a statement Petronas made to Bloomberg.
When an unanticipated circumstance, such as a fire or natural disaster, makes it impossible for them to fulfil their contractual duties, businesses generally declare force majeure. It is possible that Petronas can now utilise the same clause to stop shipments to international clients given the declaration of force majeure on supply to the LNG project.
The company went on to say that it was looking at measures to lessen the effects of the pipeline rupture and resume gas delivery to the LNG project.
