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UPDATE 2-Shell declares force majeure on Nigerian gas supplies to NLNG

Thu, 06th Aug 2015 16:59

(Adds comment from Shell that oil output not affected)

By Julia Payne

ABUJA, Aug 6 (Reuters) - Shell has declared forcemajeure on gas supplies to Nigeria's LNG export terminal onBonny Island in Rivers State due to a pipeline leak, a spokesmanfor the company said on Thursday.

The force majeure on gas supplies from SPDC to NigeriaLiquefied Natural Gas Co (NLNG) was effective from Aug. 4,spokesman Precious Okolobo said, adding that the company wasinvestigating the cause of the leak.

SPDC is Shell's Nigerian joint venture with state oilcompany Nigerian National Petroleum Corp (NNPC).

Okolobo said that oil production was not affected by theshut down of the Eastern Gas Gathering System 1 (EGGS-1)pipeline and that gas was still reaching NLNG via alternativelines.

Tony Okonedo, a spokesman for NLNG, said that exports had sofar been unaffected but that the company was discussingpotentially rescheduling some shipments with its customers.

NNPC holds a 49 percent stake in NLNG and the rest is ownedby oil majors Shell, Total and Italy's Eni.

It can produce 22 million metric tonnes of liquefied gas peryear and has long-term supply contracts with buyers in Italy,Spain, Turkey, Portugal and France. It also sells on the spotmarket.

(Additional reporting by Oleg Vukmanovic in Milan; editing byJason Neely and Susan Thomas)

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