NLNG Export threatened as explosion hits its pipelines

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Following an explosion that rocked a section of the right of way housing two gas transmission pipelines, one of which belongs to the Nigeria LNG Limited, about three kilometres from Rumuji in Rivers State, there may be a setback on export of the nation’s Liquefied Natural Gas likely .

The NLNG explosion which occurred on Wednesday, said in a statement signed by its General Manager, External Relations Division, Kudo Eresia-Eke.

The statement further disclosed that, “The underlying cause of the incident is still to be determined. No injuries or fatalities have been reported. Emergency response procedures were immediately activated and the relevant authorities notified. Communities closest to the area of the incident have been advised not to approach the site in the interest of safety.

According to the statement “Other measures and engagements have also been initiated to ensure that the situation does not escalate. In the meantime, investigation into the incident is ongoing. Further updates will be provided in due course.”

The NLNG is owned by four shareholders, namely: the Federal Government, represented by the Nigerian National Petroleum Corporation (49 per cent); Shell Gas BV (25.6 per cent); Total LNG Nigeria Limited (15 per cent); and Eni International (N.A,) N. V. S. a. r. l (10.4 per cent).

The company’s six trains have the capacity to produce 22 million tonnes of LNG a year, with long-term supply contracts with Italy’s Enel, Shell, France’s Engie SA and Portugal’s Galp, among others. It also sells on the spot market.

A seventh train is being planned at the NLNG, which will increase the plant’s capacity to 30mtpa. The NLNG had said it was progressing with preliminary early site preparation work but was awaiting the Final Investment Decision from shareholders.

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