Shell shuts Nigerian gas plant

2011-08-25 18:15
Lagos - Shell has shut down a gas plant in Nigeria following the latest in a series of pipeline leaks, causing a shortfall in gas supply for electricity generation, the company said on Thursday.

Shell's Nigerian joint venture said in a statement it "shut down Utorogu gas plant following a leak on the Utorogu-UPS trunkline in Western Niger Delta. The line evacuates condensate from the gas plant".

The Niger Delta is the country's main oil-producing region. The plan was shut on Wednesday night, it said.

"The leak was confirmed yesterday and a joint investigation visit is planned to determine the cause," the Anglo-Dutch oil giant said.

"SPDC regrets the shortfall in gas supply for electricity generation and is working to repair the line and resume gas production as soon as possible," it added, referring to its Nigerian joint venture, the Shell Petroleum Development Company.

Shell on Tuesday warned it may not meet contractual obligations on certain oil exports from Nigeria after sabotage caused damage to two other pipelines in the country's main oil-producing region.

The company declared force majeure on Bonny Light exports for the remainder of August as well as September and October.

Force majeure is a legal term releasing a company from contractual obligations due to circumstances beyond its control. Bonny Light is a type of crude.

Nigeria is Africa's largest oil producer.

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