Shell Seals Oil Export Pipeline

Shell has shut the Trans Niger Pipeline that carries the country’s Bonny Light crude oil to an export terminal.

Punch gathered that the pipeline has been shut since May 12. It was also reported that the Trans Niger Pipeline transports around 180,000 barrels per day of crude oil to the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure critical for continued domestic power generation at the Afam VI power plant and liquefied gas exports, Shell said on its website.

The company closed the pipeline following a leak in the Ogoni area. Shell said the closure had not led to a force majeure declaration but would not otherwise comment on exports.

Force majeure is a chance occurrence or unavoidable accident. It is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties prevents one or both parties from fulfilling their obligations under the contract.

The expected duration of the closure is not clear, but traders said Bonny Light loadings were delayed by four to six days, and that some of the June loading cargoes could be deferred to July as a result.