Global commodity traders Glencore and Vitol are set to receive a combined $380 million in compensation after their gas supplier, Taleveras, secured a legal victory against Nigeria LNG Limited (NLNG) over undelivered cargoes.
The ruling, issued by the London High Court and upheld by the Court of Appeal, stemmed from a dispute over 19 liquefied natural gas (LNG) cargoes that NLNG was contractually obligated to deliver to Taleveras between 2020 and 2021. Taleveras had pre-sold these cargoes to Glencore and Vitol, but the non-delivery led to litigation spanning four years.
With NLNG’s appeal rejected, Vitol will receive approximately $260 million, while Glencore will be compensated with $120 million. A full written judgment is expected in the coming weeks.
NLNG, which operates Nigeria’s largest LNG plant, is a joint venture involving Shell, TotalEnergies, and Eni as minority stakeholders, with the Nigerian National Petroleum Company Limited (NNPC) holding a 49% stake.
This case is part of a broader wave of disputes triggered by the surge in global gas prices following the COVID-19 pandemic and Russia’s invasion of Ukraine in 2022. When prices skyrocketed, some LNG producers allegedly diverted contracted cargoes to the more lucrative spot market, leading to lawsuits from buyers.
While Taleveras has not disclosed how much it will receive beyond the $380 million settlement, the ruling marks a significant legal and financial victory for the company.
