(Adds SPDC statement, background)
By Oleg Vukmanovic
MILAN, Aug 10 (Reuters) - Shell Petroleum Development Co has declared force majeure on gas supplies to the Nigeria Liquefied Natural Gas (NLNG) export facility on Bonny Island, a spokesman said.
"The Shell Petroleum Development Company of Nigeria Ltd (SPDC) declared force majeure on gas supply to NLNG on 8 August 2016, following a leak on the Eastern Gas Gathering System (EGGS-1) pipeline through which it supplies the bulk of its gas to NLNG," a spokesman said in an emailed statement.
SPDC, Royal Dutch Shell's Nigerian unit, is a joint venture with state oil company Nigerian National Petroleum Corp (NNPC). They supply gas to the LNG plant.
The declaration may impact exports from the facility.
"The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs," the spokesman said, adding that SPDC continues to supply gas to the facility through other pipelines.
NLNG, set up 16 years ago to export gas, is owned by NNPC, Shell, Total and Eni.
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.
Down more than two-thirds from 2014 levels, spot LNG prices have been rising in recent months due to production outages in Angola and Australia.
The rally ran out of steam last week and prices declined sharply as Chevron's Gorgon LNG project resumed production, but potentially lower output from Nigeria LNG may again tighten supply. (Reporting by Oleg Vukmanovic; Editing by Dale Hudson and Louise Heavens)
Recommended Reading
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.
Gibson, SOGDC to Develop Oil, Gas Facilities at Industrial Park in Malaysia
2024-02-14 - Sabah Oil & Gas Development Corp. says its collaboration with Gibson Shipbrokers will unlock energy availability for domestic and international markets.
E&P Highlights: Feb. 16, 2024
2024-02-19 - From the mobile offshore production unit arriving at the Nong Yao Field offshore Thailand to approval for the Castorone vessel to resume operations, below is a compilation of the latest headlines in the E&P space.
TotalEnergies Acquires Eagle Ford Interest, Ups Texas NatGas Production
2024-04-08 - TotalEnergies’ 20% interest in the Eagle Ford’s Dorado Field will increase its natural gas production in Texas by 50 MMcf/d in 2024.