Barring other arrangements, Nigeria has lost a minimum of $35.139 million, about N7.029 billion, over the last three days, as Shell Nigeria, Thursday, said it has shut down the 180,000 barrels of crude oil per day Trans Niger Pipeline.
According to a statement by Shell, the company shut down the pipeline, May 12, but failed to state the reasons for the shut down and when it would be reopened.
The Trans Niger Pipeline is critical to Nigeria’s crude export as it carries Nigeria’s crude oil, Bonny Light, to an export terminal.
Traders told Reuters that Bonny Light loadings have been delayed by up to four days over the past week.
The Trans Niger Pipeline, according to Shell, 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 and liquefied gas exports.
The Central Bank of Nigeria puts the average price for Bonny Light at $65.07 per barrel. This means that for every day that the pipeline is shut, Nigeria will be losing a minimum of $11.713 million, about N2.343 billion.
The Nigerian National Petroleum Corporation, NNPC, had a couple of weeks ago, lamented the recent increase in the attack on crude oil and gas pipelines across the country, stating that the country is losing about 60,000 barrels of crude oil and condensates daily whenever there is a pipeline break.