Shell Petroleum Development Company of
Nigeria Ltd has declared force majeure on gas supply to the Nigeria
LNG’s export facility on Bonny Island.
Force majeure is a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances
The oil major said the force majeure was
declared on August 8, 2016, following a leak on the Eastern Gas
Gathering System pipeline through which it supplies the bulk of Shell’s
gas to NLNG.
“The pipeline has been shut down for a
joint investigation visit into the cause of the leak and repairs,” a
Shell spokeswoman, Natasha Obank, said in a statement, adding that SPDC
continues to supply gas to the facility through other pipelines.
Shell had, on August 4, 2015, declared
force majeure on gas supplies to the NLNG from the Eastern Gas Gathering
System following a leak along the EGGS-1.
NLNG is owned by four shareholders,
namely, the Federal Government, represented by the Nigerian National
Petroleum Corporation (49 per cent), Shell Gas BV, (25.6 per cent),
Total LNG Nigeria Limited (15 per cent), and Eni International (N.A,) N.
V. S. a. r. l (10.4 per cent).
It has the capacity to produce 22
million tonnes of LNG a year and has long-term supply contracts with
Italy’s Enel, Shell, France’s Engie SA and Portugal’s Galp, among
others. It also sells on the spot market.
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