Royal Dutch Shell Plc said its local unit has declared force majeure on supplies to a liquefied natural gas plant in Nigeria because of a leak, Bloomberg reports.
“The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs,” 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. Shell however said some supply continues through other pipelines.
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. The Nigerian National Petroleum Corp. holds a 49 percent share and Shell has 25.6 percent.