Nigeria: Shell's Proposed Cancellation of Contract to Replace Ruptured Pipelines Stirs Anger in Communities

30 August 2014

Speculations that Anglo Dutch oil giant, Shell is considering cancelling the Trans Niger Pipeline (TNPL) in the creeks of Niger Delta is stirring anger in the region. A group, operating as Niger Delta Pollution Vanguards Movement (NDPVM) which is spearheading pressure to prevent the project cancellation, has written to President Goodluck Jonathan, urging him to intervene and avert the planned cancellation of the contract for the transport of oil and gas through some Niger Delta communities. It insists that the proposed pipeline project will prevent environmental degradation of the communities from oil spills emanating from ruptured pipelines.

The project known as Trans Niger Pipeline (TNP) 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 (Afam VI power plant) and liquefied gas exports. The proposed pipeline project is meant to replace the old ruptured that have caused repeated damage to the environment and way of life of the people. The desire to replace them has long been on the drawing board. The sudden cold feet developed by Shell has mystified the affected communities who had hoped that new pipeline project will significantly bring succour to the environment and ease the impact of oil spills resulting from frequent of rupture of the current aging pipelines. According to Shell, "The loopline project creates an alternative route to avoid sabotage, bypassing an area where theft and illegal refining have been common. In addition, the project will install monitoring systems to detect any intrusion or leak. The pipeline will not be completely covered to allow security patrol boats to quickly access all pipeline sections." The project location is Ogale, Alakiri, Cawthorne Channel and Bonny. Shell Petroleum Development Company Ltd (SPDC) is the joint venture (JV) operator of an unincorporated JV with a 30 per cent interest, and the partners are Nigerian National Petroleum Corporation (NNPC: 55%), Total E&P Nigeria Ltd (10%), and Nigerian Agip Oil Company (NAOC: 5%).

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