Shell’s Global LNG Plans Hit Pipeline Snag in Nigeria

Shell’s Global LNG Plans Hit Pipeline Snag in Nigeria

Royal Dutch Shell announced on Friday that gas supplies to Nigeria’s LNG export terminal on Bonny Island had suffered a reduction thanks to the shutdown of a major oil pipeline in the country, reported Reuters.

The shutdown was caused by a leak and theft, according to the company.

Shell’s Nigerian unit, Shell Petroleum Development Company (SPDC), controls crude oil exports through two major pipelines, including the Trans Nigera Pipeline (TNP).

“SPDC JV gas supplies to (Nigeria LNG) are reduced as a result of the TNP shutdown,” Shell said in an emailed statement.

SPDC is a joint venture with state oil company Nigerian National Petroleum Corp.

Another Reuters item argues that LNG is fast becoming a rival commodity to crude, citing Swiss commodity trading house Trafigure as an example.

“They’re taking the classic trading model from other energy markets and applying it to LNG, using infrastructure and shipping to take advantage of opportunities, it’s the typical bag of tricks used by traders,” said Jason Feer, head of business intelligence at Poten & Partners.

Shell, moreover, is fronting for Trafigura’s LNG supply in Latin America and Egypt, signaling another energy development as traders are partnering suppliers as a way of minimizing risk exposure from new buyers.

Login

Welcome! Login in to your account

Remember me Lost your password?

Lost Password