Investigation launched after Shell’s Bayelsa gas plant fire

Shell Petroleum Development Company of Nigeria (SPDC) says the fire that erupted after explosions at its gas processing plant in Gbaran, Yenagoa Local Government Area of Bayelsa, has been extinguished.

The fire followed an explosion on Tuesday, according to the News Agency of Nigeria (NAN).

SPDC spokesperson Michael Adande told NAN on Thursday that the fire was put out on Wednesday to facilitate a Joint Investigative Visit (JIV) aimed at determining the cause of the incident.

Mr Adande said: “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.”

Most important gas project

The Gbaran gas facility supplies the Nigerian Liquified Natural Gas (NLNG) export terminal in Bonny Island, Rivers State, and is by far the most important Nigeria LNG gas feedstock project, processing almost 2 billion standard cubic feet of gas per day since it became operational in 2010.

Some residents reported that the explosion originated from a high-pressure gas pipeline supplying gas to the processing facility.

Despite concerns about potential disruptions in gas exports, the company assured that operations at the facility would not be halted.

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 led major oil companies to abandon these fields and shift their focus to offshore deepwater drilling.

In response to these ongoing challenges, major oil companies are increasingly pulling out of onshore fields.

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 decision aligns with Shell’s strategy to exit the difficult operating conditions in the Niger Delta region. Shell also expects to receive additional payments that could total up to $1.1 billion.

The government has said it will approve the divesting after the company agrees to clean up the communities it operated in.