Shell declares force majeure on gas supplies to NLNG

Shell on Thursday declared force majeure on gas supplies to Nigeria’s LNG export terminal on Bonny Island in Rivers State. This action, a spokesman for the company said was due to a pipeline leakage.

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

SPDC is Shell’s Nigerian joint venture with state oil company Nigerian National Petroleum Corp (NNPC). Tony Okonedo, a spokesman for NLNG, said that exports had so far been unaffected but that the company was discussing potentially rescheduling some shipments with its customers.

NNPC holds a 49 per cent stake in NLNG and the rest is owned by oil majors Shell, Total and Italy’s Eni.

It can produce 22 million metric tonnes of liquefied gas per year and has long-term supply contracts with buyers in Italy, Spain, Turkey, Portugal and France and also sells on the spot market. The company has witnessed many down times in Nigeria due to activities of crude thieves.

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