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Will Shell shutdown hit Nigeria power supply?

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ABUJA, NIGERIA (Commodity Online): The supply of power in Nigeria will likely remain static despite a decision by Shell to close two natural gas plants, Nigerian officials said Thursday. Shell announced it would temporarily close two gas plants in the country as part of an effort to repair the Trans Forcados pipeline system.

A group calling itself People's Patriotic Revolutionary Force of the Joint Revolutionary Council claimed responsibility for attacking Shell facilities in the Niger Delta last week.

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Mutiu Sunmonu, the managing director for Shell in Nigeria, said his company was "totally committed" to supplying gas for power generation in the country, Nigeria's Next newspaper reports.

"However, recent sabotage incidents have resulted in damage to the TFP and we have been unable to evacuate the condensate that is produced with the gas through this pipeline," he said.

Shell warned last week that blackouts were imminent because of shutdowns at various gas facilities. Yakubu Lawal, a spokesman for the Minister of Power, said increased production from Chevron could offset the declines from Shell.

Shell supplies more than 75 percent of the domestic gas for power generation and other industrial sectors in Nigeria. (EUNewsNet.com and OfficialWire)
MCX SUGARMKOL EX - KOLHAPUR 20 June 2012 contract was trading at Rs 2910 . What's your view on it?
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