ENI declares force majeure on NLNG exports

22 December 2015, Abuja – Export of Nigeria’s gas has suffered setback as Italian energy giant, ENI has declared force majeure on loadings from Nigeria’s LNG export plant due to pipeline sabotage, a spokesman said monday.Reuters quoted the company’s spokesman as saying that the declaration was because of an “act of sabotage” on the Ogoda-Brass transport line.

LNG Finima

LNG Finima, an NLNG vessel

Ogoda-Brass and Tebidaba-Brass are the two main onshore pipelines in  Bayelsa   State  operated by ENI’s subsidiary, Nigerian Agip Oil Company (NAOC), which feed the offshore Brass oil export terminal

Previous sabotage of Ogoda-Brass and Tebidaba-Brass, had led to shut down of production at its Akri and Oshi fields as a precaution..
Also an attack on its Ogoda Manifold-Brass Terminal pipeline at the peak of militancy in the Niger Delta had halted production of around 33,000 barrels of oil and two million cubic metres of gas per day.

Nigeria LNG’s export plant at Bonny Island can produce 22 million metric tonnes of liquefied gas a year and accounts for about eight per cent of global LNG supplies.

Apart from selling on the spot market, the company has long-term supply contracts with buyers in Italy, Spain, Turkey Portugal and France.

Reuters had reported disruptions to LNG loadings at Nigeria LNG last week, though even under the force majeure it could be exporting some volumes.

But the company would likely reschedule some shipments with its customers.
Shell Petroleum Development Company (SPDC) had in August declared force majeure on gas supplies to the NLNG plant on Bonny Island in Rivers State.

However, the force majeure did not affect all the gas supplies to NLNG by Shell as only one line- Eastern Gas Gathering System (EGGS) was affected by the leak.

NNPC holds a 49 per cent stake in NLNG and the rest is owned by oil majors Shell, Total and Italy’s Eni.
The company has shipped over 3,000 cargoes to customers since it was incorporated.

– This Day
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