Nigeria exports $17bn worth of LNG

LNG tankerSam Iketuonye 16 August 2013, Sweetcrude, Lagos – The Nigeria Liquefied Natural Gas Limited, NLNG, says it has utilised 92 billion cubic metres, bcm, of associated gas in producing liquefied natural gas, LNG, for export in the last 12 years.

In all, this translated to 968 LNG and 145 Natural Gas Liquids, NGL, cargoes, valued at about $17 billion. With this, according to NLNG, it has contributed about four per cent of Nigeria’s Gross Domestic Product, GDP, per year while fulfilling its domestic LPG supply obligations.

Mr. Patrick Olinma, General Manager, Commercial at the NLNG, revealed that the NLNG was currently responsible for about five per cent of global LNG supply.

Olinma outlined the impacts of the United States shale gas revolution, discoveries in Mozambique, some parts of East Africa and Australia, economic recession in Europe, as some of NLNG’s challenges in the global LNG market.

The challenges also included alternative energy on NLNG primary markets and limited market opportunities for renewal of two Gas Supply Agreements, GSAs, which would expire by 2020 and 2021.

Olinma said: “In this year alone, we have had four force majeure, which have placed the integrity of our deliverability in question; the Japanese have asked questions on our capacity to deliver, of course, we assured them of our capacity but the recent issue with NIMASA did not go down well.

“How do you explain your vessels placed on blockade by the government agencies of your home country; this is not good for us in the midst of global competition and we hope it does not occur again?

“We had a similar case with the NDDC (Niger Delta Development Commission) sometimes back and the Supreme Court resolved that we were protected by the sanctity of the NLNG Act, which exempts us from paying taxes until after 10 years but here we have NIMASA, DPR and NPA breathing down on us”.

The Nigeria LNG Limited is a company owned jointly by the Nigerian National Petroleum Corporation, NNPC, representing the Federal Government, with 49 per cent share, Shell-25 per cent, Total LNG Nigeria-15 per cent and Eni-10.4 per cent.

It was incorporated as a limited liability company on May 17, 1989 to harness Nigeria’s vast natural gas resources and produce LNG and NGLs for export.

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