A Review of the Nigerian Energy Industry

FLNG market to attract $47bn in 5 years

14 November 2012, Sweetcrude, LONDON – UK-based energy business consultants, Douglas Westwood, says in a report that the fastly-evolving floating liquefied natural gas, FLNG, market could attract as much as $47.4 billion in investment over the next five years.

Murray Dormer, author of the report, said in the analysis that Asia was set to be the focus region for the booming segment, accounting for around a third of the FLNG sector spending.

Australasia will reap 22% of the market, largely due to a number of liquefaction projects, while Latin America will take in 17% of global FLNG expenditure with both offshore liquefaction and regasification vessels, Dormer predicted.

He said that FLNG was an increasingly attractive option for a number of reasons, including political and security risk to ongoing supply.

“Boundary disputes, threats of civil unrest and war and terrorism are all ever-present challenges that the oil & gas industry is well-used to encountering.
However, by siting infrastructure offshore, FLNG could help mitigate some proportion of risk in regions where these issues are apparent,” Dormer said.

The analyst added that the use of offshore regasification alleviated the problems posed by local opposition to the construction of new onshore infrastructure.

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  • This would definitely fly in a place as volatile as the Niger Delta where the activities of militants continue to prove a disincentive to investments.

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  • Ghali H Faras via Facebook

    For several years figures have been quoted but no any appreciable effort has been made to develope the sector. Its a slap on our face to see countries like Benin Republic buying their Gas from other countries while we share a common boder.

  • they is if corruption will allow Nigerians benefit from this.

  • They will still shop the money if PDP is still in power…