Home Sectors OIL & GAS Shell Lifts Force Majeure… Will Resume Supplies To NLNG

Shell Lifts Force Majeure… Will Resume Supplies To NLNG

Nigeria’s export of Liquefied Natural Gas (LNG)is expected to get a boost as Shell Petroleum Development Company (SPDC) on Friday lifted the force majeure it had declared on gas supplies to the Nigeria LNG (NLNG) plant in Bonny Island in Rivers State.

Shell had on August 4, declared force majeure on gas supplies to the Bonny Island liquefaction plant, citing a pipeline leak. The declaration of force majeure freed the company from its contractual obligations to customers due to circumstances outside its control.

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Ibe Kachikwu hinted that the Corporation may settle for the option of community-based policing to protect the vast artery of oil and gas pipeline network across the country.

The company also launched investigations into the cause of the leak, which was not immediately known.

However, the force majeure did not affect all the gas supplies to NLNG by Shell as only one pipeline – Eastern Gas Gathering System (EGGS) was said to have been affected by the leak.

Though LNG exports still remained in progress, the company might have rescheduled some shipments with its customers.

Speaking on the force majeure lift, Shell’s Corporate Media Relations Manager, Mr. Precious Okolobo said; “Effective August 21, 2015, SPDC JV (Shell Petroleum Development Company Joint Venture)  lifted the force majeure on gas supplies to NLNG from the Eastern Gas Gathering System (EGGS-1) following repair of a sabotage leak on the line”.

According to the Shell’s spokesman, a joint investigation team, which visited the site, found that the leak was caused by a crude theft connection, apparently installed by crude oil thieves.

Okolobo added that the crude oil thieves thought the pipeline was transporting crude oil.

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

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