Cooking gas scarcity looms as floods threaten oil, gas facilities

The severe flooding in Rivers, Delta, Bayelsa have placed Nigeria’s oil and gas facilities at severe risk, forcing the Nigeria Liquefied and Natural Gas (NLNG) firm to declare force majeure, as Nigerians face a possible scarcity of the product.

According to energy experts, if the flooding persists till November amid other industry issues, it will cost Nigerians N12,000 or more to fill a 12.5kg gas cylinder.

Energy Consultant, Gboyega Amu, warned that the flooding, which was caused by unusually heavy rains and the release of water from a Dam in Cameroon, could continue into November.

As of October 2022, the Ogba/Egbema/Ndoni communities in the Omoku local government area of Rivers state are flooded and have recorded the destruction of properties as well.

Companies like Shell Petroleum Development Company, Nigerian Agip Oil Company, and TotalEnergies, have facilities in Omoku, thereby placing these facilities at risk with the flooding in the town.

The onshore gas field project, Assa North Ohaji South, currently being developed by the Nigerian National Petroleum Company (NNPCL), Shell, Nigerian Agip Oil Company, and Total Exploration and Production Nigeria, could also be at risk as it is located in the same locality.

Investigations show that the most affected communities in Rivers state are Orashi and Omoku.

Omoku is known for its rich oil and gas deposits and the community also supplies natural gas to Nigeria Liquefied Natural Gas (NLNG) Limited, which is already operating at 70 per cent capacity.

Sources also indicate service companies that usually come to service equipment on onshore oil and gas production sites can no longer gain access into the state largely due to the fact that roads leading from Delta state and Rivers state are currently cut off due to flooding.

According to NLNG spokesman Andu Odey in a statement, the gas company was determining the extent of the disruption and would try to mitigate the impact of the force majeure.

NLNG further claimed that all of its upstream gas suppliers had announced force majeure, compelling it to do the same.

“The notice by the gas suppliers was a result of high flood water levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG,” he noted.