Nigerian gas pipeline blast unlikely to disrupt LNG exports-trade sources

Nigerian gas pipeline blast unlikely to disrupt LNG exports-trade sources

A blast on a gas pipeline system supplying the Nigeria LNG (NLNG) liquefied natural gas export terminal is not expected to cause any major disruption to vessel loadings, trade sources said. The explosion, which occurred on Wednesday, hit one of NLNG’s gas pipelines, disrupting feedgas supplies into the liquefaction plant. No casualties were reported, and the incident is being investigated, NLNG said.

But traders with knowledge of the matter said the 22 million tonnes/year plant is fed by two pipelines, one of which remains operational. Oil and gas pipelines are frequent targets for sabotage and fuel theft in the Niger Delta, and one trade source said Wednesday’s blast was likely to be linked to this activity. Any disruption to LNG supplies could force long-term customers such as Italy’sEnel, Shell, France’s Engie and Portugal’s Galp into the spot market for replacement cargoes, tightening global markets and raising prices.

NLNG, set up 16 years ago to export gas, is owned by Nigerian National Petroleum Corp, Shell, Total and Eni.

http://www.hellenicshippingnews.com/nigerian-gas-pipeline-blast-unlikely-to-disrupt-lng-exports-trade-sources/

Share Button

Sharing is caring!