• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 51 mins One Last Warning For The U.S. Shale Patch
  • 3 hours Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 3 hours Chile Tests Floating Solar Farm
  • 2 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 10 hours Poll: Will Renewables Save the World?
  • 8 hours Modular Nuclear Reactors
  • 19 hours China's E-Buses Killing Diesel Demand
  • 19 hours Trump sells out his base to please Wallstreet and Oil industry
  • 15 hours China's Expansion: Italy Leads Europe Into China’s Embrace
  • 1 day Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 1 day Read: OPEC THREATENED TO KILL US SHALE
  • 1 day Trump Tariffs On China Working
  • 1 day Biomass, Ethanol No Longer Green
  • 7 hours US-backed coup in Venezuela not so smooth
Trade Tensions Are Keeping A Lid On Oil Prices

Trade Tensions Are Keeping A Lid On Oil Prices

Many crude market analysts are…

Shell Declares Force Majeure For Gas Supplies to Massive Bonny Island Facility

Bonny Island

Shell has declared a force majeure on gas supplies destined for the massive gas facility on Bonny Island – a site co-owned by the Anglo-Dutch firm and the Nigerian National Petroleum Corp.

“The [Shell Petroleum Development Company] declared force majeure on gas supply to [the Nigeria Liquefied Natural Gas facility] on August 8th, 2016, following a leak on the Eastern Gas Gathering System (EGGS-1) pipeline through which it supplies the bulk of its gas to NLNG,” a statement by Shell said.

The 16-year-old Bonny Island facility has been jointly owned and operated by the NNPC, Shell, Total and Eni since it came online.

The site has the capacity to export a total of 22 million tons of liquefied natural gas in a year, allowing it to secure long-term export contracts with oil majors in Italy, France and Portugal.

Bonny Island is located in the Niger River Delta – an area where separatists have taken to attacking oil operations in order to hurt Lagos’ revenues and force the national government to address development disparities between regions.

Recent estimates suggest that groups like the Niger Delta Avengers have cut Nigeria’s oil production rate by 700,000 barrels per day, playing its part to cause the country to lose its position as the top crude producer in Africa to Angola.

On Tuesday, local media reports surfaced, detailing an attack on a Nigerian military checkpoint in the state of Bayelsa, killing three soldiers. The NDA – the largest separatist group active in the region - has not yet claimed responsibility for the attack.

Cracks in NDA’s leadership are beginning to show. The Reformed Niger Delta Avengers, a group that claims to have splintered off of the original NDA, said this week that Former President Goodluck Jonathan and 19 other politicians have vocally supported separatist attacks in the oil-rich nation.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News