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Nairametrics
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Home Sectors Energy

Shell says fire at two-billion-cubic-feet Gbaran gas facility extinguished 

Aghogho Udi by Aghogho Udi
May 16, 2024
in Energy, Sectors
shell, federal high court
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The fire that erupted after explosions at the gas processing plant run by Shell Petroleum Development Company of Nigeria (SPDC) in Gbaran, Yenagoa Local Government Area of Bayelsa, has been put out.  

According to the News Agency of Nigeria (NAN), the explosions occurred on Tuesday.  

Michael Adande, spokesperson for SPDC, informed NAN on Thursday that the fire was extinguished on Wednesday to facilitate a Joint Investigative Visit (JIV) to determine the cause of the incident. 

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He stated, “We are pleased to report that the fire outside our Gbaran Central Processing Facility in Bayelsa went out last night and a regulator-led Joint Investigation Visit is being planned to determine the cause and impact.”  

The gas facility supplies the Nigerian Liquified Natural Gas (NLNG) export terminal in Bonny Island, Rivers. 

According to some residents, the explosion originated from a high-pressure gas pipeline that supplied gas to the processing facility. The incident has sparked worries about potential disruptions in gas exports, but the company assured that operations at the facility would not be shut down. 

Backstory  

Nairametrics earlier reported Shell investigating thick smoke at the gas plant over reported explosions in the area.  

Residents living near the Gbaran Ubie facility in Bayelsa State were alarmed by a powerful explosion that reportedly rattled the ground and sent dense clouds of smoke hovering in the sky. 

The company had earlier stated that it was initiating measures to investigate the details of the incident and evaluate any potential effects on its operations. 

The Gbaran facility, operational since 2010, stands as Nigeria LNG’s foremost gas feedstock project, processing nearly two billion standard cubic feet of gas daily. 

What you should know 

The cause of the explosion remains unknown, However, land-based oil operations in Nigeria’s resource-rich Niger Delta are frequently targeted by sabotage, theft, and pipeline vandalism. These challenges have compelled major oil companies to abandon these fields and shift their focus to offshore deepwater drilling. 

These security issues have significantly impacted the region’s oil production capabilities, frequently causing operational disruptions and economic losses. 

In response to these ongoing challenges, major oil companies are increasingly pulling out of these onshore fields. They are shifting their focus to deepwater drilling, which provides better security and is less affected by the problems associated with onshore operations. 

In January, Shell agreed to sell its Nigerian onshore oil assets to a local consortium for over $1.3 billion, subject to government approval. 

The company stated that its decision is in line with its strategy to exit the difficult operating conditions in the Niger Delta region. Moreover, Shell expects to receive additional payments that could total up to $1.1 billion. 


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Tags: BayelsaGbaran gas plantShellSPDC
Aghogho Udi

Aghogho Udi

My name is Aghogho Udi, a writer, journalist, and researcher, deeply intrigued by the political economy of Nigeria and the broader African context. My focus lies in shedding light on the intricate connections between macroeconomics and politics, offering valuable insights that foster comprehension of Africa's prevailing economic landscape and the world in general.

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