Nigeria to become 3rd world biggest gas-exporting nation - NLNG boss

Nigeria to become 3rd world biggest gas-exporting nation - NLNG boss

- Tayo Ogini, the general manager of Nigeria Liquefied Natural Gas (NLNG), has said that Nigeria is presently the fourth biggest exporter of gas globally

- Ogini said with upon the NLNG's conclusion of building more plants, Nigeria will become the third largest gas exporter

- He said that this will be possible if the federal government invests $7 billion on its project to expand its production capacity

The Nigeria Liquefied Natural Gas (NLNG) Ltd, has said its ongoing plans to reach a Final Investment Decision (FID) on its Train-7 project by the end of 2018, will earn Nigeria a place as the third world largest exporter of gas.

Tayo Ogini, the general manager of the NLNG made this announcement on Sunday, August 5, in his speech that centred on the facility located at Bonny Island. The presentation was to acquaint Ibe Kachikwu, the minister of state for petroleum resources, who was at the plant to ascertain the progress made on the project so far, The Nation reports.

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Ogini said that currently, Nigeria is the fourth exporter of gas globally. The NLNG has six operational gas plants. The first train was built in 1989 but by 2007 till date, plans to build Trains 7 and 8 were shelved.

The six trains have a combined capacity to produce 22 metric tonnes per annum of Liquefied Natural Gas (LNG).

However, plans to invest seven billion dollars on the Train-7 project would expand its production capacity to 30 mtpa making Nigeria the 3rd largest exporter of gas in the World after Qatar and Australia.

Ogini said the gas produced in Nigeria met global standard, adding that the NLNG had built a reputation of reliability in its gas supplies internationally.

He said that the hub of crude oil exporters on the island such as Shell SPDC, ExxonMobil and the NLNG can almost effortlessly produce two million barrels of oil per day.

He further said that Nigeria had 23 NLNG carriers which had sailed more than 4,000 cargoes making it the largest in Africa.

However, Ogini pointed out that the firms were going contrainsts of infrastructure, adding that with the three-year Bonny-Boro road project which the company had embarked on, part of the problem would soon be addressed.

In response to the foregoing, Kachikwu praised the NLNG management for its efficiency, saying the company was a testament to the fact that things could be properly done in the country.

He stated that the Train-7 project is fantastic but that Nigeria is yet to be where it should be.

He challenged the NLNG to begin to think of exporting 40 mtpa over the next 30 years, as well as tackle the issue of gas pricing as most importers of domestic gas prefer to bring in shipments than to patronise the NLNG.

After his inspection of the facility, Kachikwu said Nigeria’s 2019 elections would not interfere with the company’s expansion plan.

He said that whatever happened at the polls, FID on Train-7 as well as its construction would go on.

Concerning NLNG's assistance of Brass and Olokola LNG projects, he rated the firms excellent in their performance.

He said: “We have opportunities that are stranded everywhere – Brass LNG in terms of shareholding and financing; OKLNG in terms of even taking off the ground.

“I am saying as the grandfather of this business – they built six trains, looking at seven, hopefully potentially more. Let’s begin to look at minimal investments, through structures and designs and reconfiguration and expert advice.

“You can actually hand-hold some of those trains that are beginning to lag behind so that the whole founding father concept of ‘take this all over the place’ can happen.

“We are going to be reaching out to them, not from an imposition point of view but from a collaborative point of view to see what we can do and learn from what they have done well.”

Moreover, Simbi Wabote, the executive secretary, Nigerian Content Management Development Board (NCDMB), said his agency had moved to ensure the Train-7 project would be built with consideration to Nigeria’s local content law in the industry.

Wabote said: “We worked with them conscientiously to ensure that the FEED contract was signed within record time and we have a clear service level agreement between ourselves and NLNG to ensure that we fast-track the contracting cycle.

“This is also very important to ensure that we take FID at the end of the year as soon as we finish FEED work.

“We are going to focus more with them to ensure that the letters of the law are properly interpreted in terms of construction phase of the plant as well as its management phase.’

Going by NLNG’s shareholding structure, the federal government through the Nigerian National Petroleum Corporation (NNPC) owns 49 per cent of its shares.

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Other shareholders are Shell Gas B.V. 25.6 per cent, Total Gaz Electricity Holdings France 15 per cent, and Eni International – 10.4 per cent.

The company also recently signed deals with consortia to begin on FEED for the Train-7 ahead of the FID in December, 2018.

Meanwhile, NAIJ.com reported that Ibe Kachikwu, Nigeria's minister of state for petroleum resources, had said Nigeria had lost United States of America, as a significant crude export market.

The minister speaking at CERAWeek in Houston, US, noted that the era when the United States was a ready market for crude oil from Nigeria “is gone”.

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Source: Naija.ng

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