As a result of pipeline damage, Italian oil giant Eni on Monday declared force majeure on loadings from Nigeria’s LNG export plant, the company’s spokesman revealed.
According to the spokesman, the declaration was as a result of an act of destruction on the Ogoda-Brass transport line.
Eni’s subsidiary, Nigerian Agip Oil Company (NAOC), operates the Ogoda-Brass and Tebidaba-Brass which are the two main onshore pipelines in Bayelsa that feeds the offshore Brass oil export terminal.
With the capacity to produce 22 million metric tonnes of liquefied gas per annum, Nigeria LNG (NLNG)’s export plant located in Bonny Island, Rivers State, accounts for approximately 8% of worldwide LNG supplies. It has a longstanding supply contracts with purchasers in Italy, Spain, Turkey Portugal and France and also sells on the spot market.
In August 2015, Shell Petroleum Development Company (SPDC) had declared force majeure on gas supplies to the Bonny Island, NLNG plant. However, not all the gas supplies by Shell to NLNG were affected by the force majeure, as only one line; the Eastern Gas Gathering System (EGGS) was affected by the leakage.
NNPC holds a 49% stake in NLNG while Shell, Total and Eni holds the remaining stake. Since the company was incorporated, it has transported in excess of 3,000 cargoes to customers, Reuters reports.