A London court has ruled that Nigeria LNG Limited (NLNG), a leading liquefied natural gas (LNG) producer, must pay $380 million in damages to Swiss commodity trading firms Vitol and Glencore for failing to fulfill contracted LNG deliveries. The dispute stems from NLNG's failure to deliver 19 cargoes between 2020 and 2021, which were part of supply agreements secured by Taleveras, a Dubai-based trading company.

Taleveras, founded in 2004 by Nigerian businessman Igho Sanomi, had pre-sold some of the cargoes to Vitol and Glencore. When NLNG failed to deliver the agreed-upon shipments, the Swiss firms initiated legal action against Taleveras, sparking a series of lawsuits. Last week, an appeal by NLNG was dismissed, upholding the court's decision that the company must pay approximately $260 million to Vitol and $120 million to Glencore.

NLNG, a joint venture involving Shell, TotalEnergies, Eni, and the Nigerian National Petroleum Company (NNPC) Limited, which holds a 49% stake, stated that it is reviewing the court's decision but declined to provide further comment. Shell, Eni, and TotalEnergies also refrained from commenting, while Vitol, Glencore, and Taleveras did not respond to requests for remarks.

The ruling highlights ongoing tensions in the global LNG market, where producers have faced accusations of withholding contracted supplies to capitalize on higher spot market prices. Similar disputes have emerged worldwide, including arbitration cases involving Shell and BP Plc against U.S. exporter Venture Global LNG.

This case underscores the complexities of international energy trading and the legal ramifications of contract breaches in a volatile market.