The Trans Niger Pipeline in Nigeria, a crucial route for transporting crude oil to the Bonny export terminal, has been forced to shut down due to an explosion that caused a fire, as confirmed by the police on Tuesday.
Renaissance Group, the new owner of Shell’s former onshore subsidiary responsible for operating the pipeline, has acknowledged the incident in Rivers State. The company has dispatched a team to investigate the blast, as reported by Reuters.
The situation is now reported to be under control, and an investigation is underway to determine the cause of the explosion that occurred on Monday night, according to a statement from Rivers State police.
In efforts to uncover any potential acts of sabotage, two individuals have been taken in for questioning by the authorities, as stated by the police.
The duration of the pipeline shutdown remains uncertain. If the closure extends for a prolonged period, operators may be compelled to declare force majeure on Bonny Light crude exports.
Pipeline sabotage and crude oil theft have been persistent issues in Nigeria’s oil industry, leading major international companies like Shell, ExxonMobil, Total, and Eni to withdraw from onshore and shallow-water operations in favor of deep-water exploration.
Recently, Renaissance Group, a consortium of Nigerian exploration and production companies including Aradel Energy, First E&P, Waltersmith, ND Western, and international energy firm Petroline, completed the acquisition of Shell’s former onshore assets.
The Trans Niger Pipeline, with a capacity of around 450,000 barrels per day, serves as one of the primary conduits for exporting Bonny Light crude from Nigeria, the largest oil producer in Africa.