(Ecofin Agency) - Shell Petroleum Development Company of Nigeria Ltd (SPDC) has today declared force majeure on exports of crude oil from the Forcados Terminal in Delta State, subseauent to a leak on the Trans Forcados Pipeline (TFP), which delivers Forcados grade of crude oil to the export terminal.

Shell had in July lifted the force majeure declared on exports of Forcados on May 5, following leaks on the pipeline but this development,  would potentially lead to a drop in power generation as it will affect gas supply to some power stations. Thisdaylive reports

Shell’s Corporate Media Relations Manager, Precious Okolobo, said in a statement that the force majeure, which took effect from yesterday afternoon, was due a leak on the TFP that has affected crude receipts into Forcados Terminal.

The pipeline, which belongs to the Nigerian Petroleum Development Company (NPDC), an affiliated company of the Nigerian National Petroleum Corporation (NNPC), transports Forcados grade of crude oil to the Forcados export terminal.

Although Okolobo did not reveal the volume of crude oil that will be affected, the Forcados export terminal has a capacity to export over 400,000 bbls/d.

The closure of the pipeline in January due to sabotage had led to a drop in power generation by 1,500 megawatts as almost half of the country’s gas production was affected as well as SEPLAT Petroleum Development Company, which is listed in both London and Nigeria; Pan Ocean Corporation and the NPDC also transport their crude oil through the pipeline.

The declaration of force majeure is coming barely three weeks after Shell lifted the force majeure on Bonny Light exports following the repair and re-opening of the Trans Niger Pipeline (TNP) and Nembe Creek Trunkline (NCTL.)

However, the lifting of the force majeure came less than one week after the company lifted the force majeure it had declared on gas supplies to the Nigeria LNG plant in Bonny Island in Rivers State, following a leak on the Eastern Gas Gathering System (EGGS) caused by oil thieves, who had thought that the pipeline was used for crude oil.