20 February 2013, Sweetcrude, Abuja – Nigeria’s liquefied natural gas, LNG, exports to the United States is on a steep decline on the back of increasing shale gas production, the Nigerian National Petroleum Corporation, NNPC, disclosed.
NNPC estimates that Nigeria holds 600 tcf of proven shale gas reserves, adding however, that the country faces a tough challenge of attracting needed investment to bring the gas to production.
“Nigeria LNG share is declining even faster. In 2011, Nigeria exported just 2.3 tcf representing 1% of total LNG export to US compared to about 12% (95 tcf) in 2007,” a data released by NNPC on Tuesday disclosed.
Nigeria, exports LNG from its six trains, 22 million mt/year Bonny Plant. The West African country has plans to raise LNG production from the plant to 30 million, mt/year by adding a seventh train.
The NNPC data projects that Nigeria’s LNG exports may shrink further, given a steady climb in shale gas share of total gas supply, from 8% in 2007 to 32% in 2011, and the US becoming a net exporter of natural gas this year.
Diezani Alison-Madueke, Nigeria’s oil minister had also noted that US shale oil and an increase in America’s gas production was already affecting Nigeria’s exports to the United States, a major importer of Nigeria’s oil.
Head of Nigeria’s Budget Office, Bright Okogu also said on Tuesday Nigeria would be losing $32.9 billion annually to cuts in US oil imports.