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Shenlong's Flow like Water, makes him immune to the damage of Poison. However, Performer has an ability called A Sip of Win that deals damage equal to the poison condition value.

Is this damage considering Poison and he's immune?

or is it just normal damage, and he's been inadvertently building up a nuclear bomb on himself for Performer to exploit?

Sip of Wine, much like Expunge and a similar fire-based spell that Kaeris has (I can't remember what it's called) just do damage that correlates to your Poison (or burning) condition. It is not poison damage, and Shenlong has no immunity from it.

Yes. The ability states that you suffer damage equal to your condition. You dont suffer the damage of the condition.