Shell declares force majeure on Nigerian gas supplies to NLNG

(Adds comment from Shell (LSE: RDSB.L - news) that oil output not affected)

By Julia Payne

ABUJA, Aug 6 (Reuters) - Shell has declared force majeure on gas supplies to Nigeria's LNG export terminal on Bonny Island in Rivers State due to a pipeline leak, a spokesman for the company said on Thursday.

The force majeure on gas supplies from SPDC to Nigeria Liquefied Natural Gas Co (NLNG) was effective from Aug. 4, spokesman Precious Okolobo said, adding that the company was investigating the cause of the leak.

SPDC is Shell's Nigerian joint venture with state oil company Nigerian National Petroleum Corp (NNPC).

Okolobo said that oil production was not affected by the shut down of the Eastern Gas Gathering System 1 (EGGS-1) pipeline and that gas was still reaching NLNG via alternative lines.

Tony Okonedo, a spokesman for NLNG, said that exports had so far been unaffected but that the company was discussing potentially rescheduling some shipments with its customers.

NNPC holds a 49 percent stake in NLNG and the rest is owned by oil majors Shell, Total (Swiss: FP.SW - news) and Italy's Eni (NYSE: E - news) .

It can produce 22 million metric tonnes of liquefied gas per year and has long-term supply contracts with buyers in Italy, Spain, Turkey, Portugal and France. It also sells on the spot market.

(Additional reporting by Oleg Vukmanovic in Milan; editing by Jason Neely and Susan Thomas)