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Shell’s Nigerian unit declares force majeure on gas supplies to NLNG

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LNG Industry,

According to Reuters, Shell Petroleum Development Company of Nigeria Ltd (SPDC) has declared force majeure on the supply of gas to the Nigeria LNG (NLNG) export plant. The company is the Nigerian unit of Royal Dutch Shell, and is a joint venture (JV) with the state oil company, Nigerian National Petroleum Corp. (NNPC).

Reportedly, a spokesman for the company said that force majeure was declared was due to a leak on the Eastern Gas Gathering System (EGGS-1) pipeline. The company uses this pipeline to deliver the majority of its gas to the NLNG facility, which is located on Bonny Island.

The facility is able to produce 22 million tpy of LNG, and was developed 16 years ago. It is owned by NNPC, Shell, Eni and Total, with long-term supply contracts with a number of companies, including Enel, Shell, Engie SA and Galp. In addition to this, it sells cargoes on the spot market. Nonetheless, Reuters claims that this latest development may impact exports, with the SPDC spokesman stating that the pipeline has been shut down for a joint investigation into the cause of the leak.

Edited from various sources by David Rowlands

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