By Ediri Ejoh

There are indications that the country’s gas industry may experience tougher times ahead, as Shell Petroleum Development Company of Nigeria Limited, SPDC, yesterday, declared a force majeure on gas supplies to the NLNG export facility on Bonny Island.

The shutdown, Vanguard learned, would force the country’s gas intake to a sharp decline by about 40 to 50 percent of the usual volume.

This came as seafarers of the NLNG Ship Management Limited, NSML, a subsidiary of NLNG, have condemned the proposed 50 per cent cut in salary and other related development.

According to the seafarers, the protest was in reaction to the mail by the Crewing Manager on behalf of NSML management requiring Nigerian seafarers to sign and comply with a proposed 50 per cent salary cut within seven days or risk losing their jobs.

However, on the force majeure, Corporate Media Relations Manager, SPDC, Precious Okolobo, confirmed that it was declared on August 8, following a leak on the Eastern Gas Gathering System, EGGS-1, pipeline through which it supplies the bulk of its gas to NLNG.

The NLNG  project  has a capacity to process 22 million metric tons a year of the liquefied fuel, about 7 percent of world supply, and five million tons of natural gas liquids. The Nigerian National Petroleum Corporation, NNPC, holds 49 percent share and Shell has 25.6 percent.

The declaration may impact exports from the facility.

According to him, “The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs, but we continue to supply gas to the facility through other pipelines.”

Although, he did not indicate whether the leak was the result of any militant attack, however, the Shell-operated Forcados crude export terminal, along with several others operated by international oil companies in the country, are subject to force majeure, meaning reduced or no exports are possible, although Shell lifted its two-month-long FM on its Bonny Light crude export terminal in early July.

Meanwhile, the arbitrary salary slash of the NSML is expected to take effect from September 1, 2016. Nigerian seafarers described the manner of informing them without proper consultation as unjust and inhumane.

They said: “The seafarers’ basis for disagreement was further steeped in the fact that seafarers of other nations including India, Malaysia, Pakistan, Russia, among others, are also challenging the 20 per cent wage cut levied on them by NSML. Why should Nigerian seafarers earn lower than their foreign colleagues?”

They argued that the proposal is tantamount to modern day slavery considering their years of training at the Maritime Academy of Nigeria, MAN, and another three years study in the UK.