Table of Contents
Key Points
- A London court upheld a ruling against Nigeria LNG, awarding Glencore $120 million and Vitol $260 million over undelivered LNG cargoes.
- Global LNG market tensions rise as suppliers prioritize spot prices, sparking lawsuits—similar cases involve Shell, BP, and Venture Global LNG.
- Amid regulatory scrutiny and market valuation concerns, Glencore considers its London listing while focusing on copper growth and shareholder returns.
Glencore Plc, the Swiss commodity trading and mining giant led by South African executive Gary Nagle, and trading powerhouse Vitol are set to receive a $380 million payout after a London court upheld a ruling against Nigeria LNG Limited over undelivered liquefied natural gas (LNG) cargoes. Glencore will receive $120 million.
The legal dispute, which played out in London’s High Court and Court of Appeal, underscores escalating tensions in global LNG markets, as suppliers and traders grapple with post-2022 contract enforcement challenges.
Legal showdown over Nigerian LNG shipments
The dispute traces back to a lawsuit filed by Taleveras, a Dubai-based energy firm founded by Nigerian businessman Igho Sanomi, against NLNG. The case centered on 19 LNG cargoes that were never delivered between 2020 and 2021, a period of extreme market volatility following Russia’s invasion of Ukraine.
NLNG—jointly owned by Shell, TotalEnergies, Eni, and the Nigerian National Petroleum Corporation (NNPC)—lost its appeal last week, solidifying the court’s decision. Glencore will receive $120 million, while Vitol is set to collect $260 million, according to court filings.
Neither NLNG nor its major shareholders have commented on the ruling. A full written judgment is expected in the coming weeks.
LNG contract disputes on the rise
Taleveras had pre-sold the disputed cargoes to Glencore and Vitol, but when NLNG failed to deliver, the situation quickly escalated into legal battles. While Glencore and Vitol successfully secured their payout, it remains unclear how much, if anything, Taleveras will recover.
The case is part of a wider trend of LNG contract disputes as traders and producers struggle with shifting market dynamics. European gas prices skyrocketed from €3.63 ($3.81) per megawatt-hour in 2020 to a record €311 ($326) in 2022, prompting suppliers to divert cargoes to more profitable spot markets—often leading to lawsuits.
Similar disputes have played out between energy giants like Shell, BP, and Venture Global LNG over unfulfilled delivery obligations.
Glencore’s next moves
Glencore, led by South African CEO Gary Nagle, remains one of the most dominant players in the global commodities market, operating across 60 different resources in 35 countries with a workforce of 150,000. Nagle, who holds an $8.1 million stake in the company, is focused on growing copper-equivalent volumes by 4 percent annually through 2028 while maintaining strong shareholder returns.
At the same time, Glencore is weighing the future of its London Stock Exchange (LSE) listing, joining other firms reconsidering their presence in the UK market due to concerns over valuations. It has also faced regulatory scrutiny in Nigeria—last year, it paid $50 million to settle bribery allegations, resolving federal charges tied to its past operations in the country.
