Soku plant attacked; NLNG declares force majeure

Dec. 12, 2008
Nigeria LNG (NLNG) has declared force majeure on its LNG exports following attacks on the Shell Petroleum Development Co.-operated Soku gas feed plant in Rivers State.

Uchenna Izundu
International Editor

BARCELONA, Dec. 12 -- Nigeria LNG (NLNG) has declared force majeure on its LNG exports following attacks on the Shell Petroleum Development Co.-operated Soku gas feed plant in Rivers State. The action could exacerbate the tight LNG supply market, depending on the length of the Soku shutdown.

The Soku plant supplies about 40% of the Bonny Island liquefaction plant's feed gas.

A Shell spokesman told OGJ that the company could not say how long it would take to repair the facilities. Shell said there also had been a sizable increase in condensate theft from the plant's pipelines. The company removed more than 50 illegal valves in August and September, according to SPDC managing director Mutiu Sunmonu.

"We have to do a thorough assessment of what's on the ground and clean up the environmental damage."

The force majeure announcement is significant because NLNG is a major exporter to Europe, and winter is approaching, said Centrica LNG director Simon Bonini at the CWC LNG summit in Barcelona.

"We're still in a supply short position, and Nigerian production is an issue," said Bonini.

Centrica has import capacity at the newly expanded Isle of Grain regasification terminal in England, which received a commissioning cargo last month. The Al Khuwair Q-Flex LNG vessel delivered the largest ever LNG cargo, which was regasified to 4.8 bcf of gas.

NLNG provides about 10% of the world's LNG.

Contact Uchenna Izundu at [email protected].