Gas exports drop as Shell declares force majeure

The nation’s gas exports have suffered a setback as Shell Petroleum Development Company of Nigeria Limited 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 agreed deliveries due to unforeseen circumstances.

The Media Relations Manager, SPDC, Mr. Precious Okolobo, said that the force majeure was declared on August 8, 2016 following a leak on the Eastern Gas Gathering System pipeline through which Shell supplies the bulk of its gas to the NLNG.

According to a source, some of the 1.7 billion standard cubic feet of gas per day from facilities associated with the pipeline would be shut-in as a result of the force majeure, meaning less exports for the NLNG and lower revenue for the government.

The country has been struggling to maintain its crude oil production following a spate of militant attacks and technical problems that in May pushed production briefly to 30-year lows.

Shell had on August 4, 2015 declared force majeure on gas supplies to the NLNG following a leak along the EGGS-1.