Shell announced its decision on Thursday.
Shell Petroleum Development Company Limited (SPDC) has said that gas supplies to Nigeria Liquefied Natural Gas, NLNG, would be suspended till further notice as it may not be able to meet its contract obligations following a leak in one of its major supply pipelines in Rivers State.
“This action is due to production deferment following a reported leak along the Eastern Gas Gathering System (EGGS-1) right-of-way (RoW) near Awoba in Rivers State,” Shell said in its declaration of force majeure, which it said became effective from 9 a.m. on Wednesday.
The cause of the leakage is not known, though observers said it may not be unconnected to attacks on oil and gas industry facilities by unidentified elements in the Niger Delta region.
Force majeure is declared by companies when it is obvious they may be defaulting on their contractual obligations as a result of circumstances beyond their control.
As a precautionary measure in line with its safety practices, Shell said it has decided to shut down its Soku and Gbaran Ubie gas export activities through the Eastern Gas Gathering System (EGGS-1) pipeline, which conveys some 1.5 billion standard cubic feet per day (SCF/D) of gas.
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