Business
Shell Suspends Gas Supply To NLNG
Nigeria’s export of Liquefied Natural Gas (LNG) has suffered a major setback as Shell Petroleum Development Company of Nigeria Limited (SPDC), has declared a force majeure on gas supplies to the Nigeria Liquefied Natural Gas (NLNG) Limited, Bonny Island Plant in Rivers State.
The development followed a reported leakage of gas along Shell’s Eastern Gas Gathering System (EGGS-1) pipeline right of way recently.
The leakage forced the oil giant to shut-down gas production at its Gbaran Ubie Gas Plant in Bayelsa State, which supplies gas to NLNG through the affected pipeline.
Shell also reduced supply from its Soku gas plant in Rivers State, which accounts for 40 per cent of gas supply to the NLNG.
NLNG’s General Manager in charge of External Relations, Kudo Eresia-Eke, said in a statement last week that Shell had consequently announced force majeure towards NLNG effective May 15.
“The shut down will be in place until the source of the leakage is identified and necessary remedial actions are completed by SPDC, to ensure safe operation,” the statement said.
The statement further disclosed that the shut down would reduce gas supply to NLNG significantly.
Eresia-Eke however promised that the NLNG was working with SPDC and its other gas suppliers to seek mitigation measures.
It is to be noted however that NLNG has to date delivered over 3000 LNG cargoes safely and reliably to its customers from the 22.5 million tones per annum capacity plant at Bonny, Rivers State.