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Shell declares force majeure on NLNG gas supply

By on May 17, 2013

Shell Petroleum Development Company Limited, the Nigerian subsidiary of Royal Dutch Shell, has declared a force majeureon gas supplies to the Nigeria LNG after a reported leak led to a pipeline shutdown.

A statement released from The Hague and made available to our correspondent on Thursday, quoted SPDC as reporting a leak along the Eastern Gas Gathering System’s (EGGS-1) right-of-way near Awoba, Rivers State.

The statement said, “Shell Petroleum Development Company Limited has declared force majeure on gas supplies to Nigeria LNG, effective 09:00 hours (Nigerian time) on Wednesday, May 15, 2013.

“This action is due to production deferment following a reported leak along the Eastern Gas Gathering System (EGGS-1) right-of-way near Awoba in Rivers State. In line with safety precautions, we have shut down our Soku and Gbaran Ubie gas export via the EGGS-1 pipeline

The measure, according to the statement, has led to 1.5 billion standard cubic feet of gas per day to be shut in, although Shell said it was able to export between 100 million and 200 million standard cubic feet per day from Soku via the GTS1 line.

The company did not give reasons for the leakage, a frequent occurrence at its Nigerian facilities often put down to theft or sabotage.

Our correspondent attempted to reach SPDC spokesman, Mr. Precious Okolobo, on the telephone on Thursday, but his number was switched off.