Shell Declares Force Majeure Due To Gas Leaks

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Royal Dutch Shell Plc has just announced that its local unit has declared force majeure on supplies to a liquefied natural gas plant in Nigeria. Shell said the move is because of a leak in one of its facilities.

Natasha Obank, a Shell spokeswoman, said in a statement. The leak occurred on the Eastern Gas Gathering System, or EGGS-1, pipeline which supplies the bulk of Shell’s gas to the Nigeria LNG plant on Bonny Island. Some supply continues through other pipelines.

“The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs,” she said.

Any reduction in LNG exports would be a blow to a country already suffering the economic effects of low oil prices and militant attacks. The NLNG project has a capacity to process 22 million metric tons a year of the liquefied fuel — about 7 percent of world supply — and 5 million tons of natural gas liquids, according to a Shell website.

According to Shell’s filings, the Nigerian National Petroleum Corporation, NNPC holds a 49 percent share and Shell has 25.6 percent.

 

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