NYMEX: ‘Force Majeure’ on gas contracts

August ‘05 contracts are operating under the consideration because of a pipeline shutdown.

NEW YORK (CNN/Money) – The New York Mercantile Exchange said Monday that delivery obligations for natural gas futures contracts for August are operating under “Force Majeure” considerations due to the shutdown of a major pipeline in Louisiana.

The NYMEX said in a statement that contracts are operating under “Force Majeure” because of a shutdown at the Henry Hub facility operated by Sabine Pipeline in Louisiana.
Henry Hub is the centralized point for natural gas futures trading in the U.S. and Sabine serves as the official delivery mechanism for NYMEX’s natural gas futures contracts.

“Force Majeure” — which means “greater force” — is a clause that excuses a party from liability if an unforeseen event prevents it from performing its obligations under the contract.

CNN