KUCHING, Oct 5 — Petroliam Nasional Bhd (Petronas) has declared force majeure on supply to its liquefied natural gas (LNG) export facility due to a leak at its Sabah-Sarawak pipeline, a news report said.
The Edge reported that the leak could exacerbate the global fuel crunch.
Petronas had triggered the force majeure legal clause following the leak on September 21, The Edge said citing a response Petronas gave to Bloomberg.
“Companies typically declare force majeure when an unforeseen event like a fire or natural disaster prevents them from complying with contractual obligations.
“With force majeure declared on supplies to the LNG plant, it is likely that Petronas can now use the same clause to cancel shipments to overseas customers,” The Edge said.
It added that Petronas had said it was exploring ways to mitigate the impact of the pipeline leak and restore gas supply to the LNG facility. — Borneo Post
