Shell declares force majeure on gas supplies to Nigeria LNG

Oil and gas giant Shell has declared force majeure on feed-gas supplies to Nigeria’s LNG export plant on Bonny Island after a pipeline leak.

“Shell declared force majeure on gas supplies from SPDC to NLNG (Nigeria Liquefied Natural Gas Co), effective August 4,” SPDC spokesman Precious Okolobo told Reuters, adding that the company was investigating the cause of the leak.

SPDC is a Nigerian joint venture between Shell and the state oil company Nigerian National Petroleum Corp (NNPC).

Tony Okonedo, a spokesman for NLNG, said that oil production was not affected by the shut down of the Eastern Gas Gathering System 1 (EGGS-1) pipeline and that gas was still reaching NLNG via alternative lines.

According to the report, exports from NLNG had so far been unaffected but the company was discussing potentially rescheduling some shipments with its customers.

The Bonny Island facility currently has six trains in operation with a total capacity of some 22 mtpa of LNG.

NLNG is a joint venture compromised of  NNPC (49%), Shell (25.6%), Total (15%), and Eni (10.4%).

LNG World News Staff; Image: NLNG