Royal Dutch Shell said its local unit, Shell Petroleun Development Company (SPDC), has declared force majeure on gas supplies to Nigeria Liquified Natural Gas (NLNG) plant because of a leak, potentially exacerbating a decline in exports for the Organisation of Petroleum Exporting Countries (OPEC) member that’s suffering from militant attacks on energy infrastructure.
“The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs,” Natasha Obank, a Shell spokeswoman, said in a statement. The leak occurred on the Eastern Gas Gathering System (EGGS-1) pipeline which supplies the bulk of Shell’s gas to the NLNG plant on Bonny Island. However, some supply continues through other pipelines, Shell said
Nigeria’s government has resumed payments to former militants and is attempting to establish talks to end attacks on pipeline infrastructure in the oil-rich Niger Delta that has sunk crude production to almost a 30-year low. Output has fallen to 1.4 million barrels a day, Minister of State for Petroleum Resources Emmanuel Kachikwu said earlier this month. The Nation