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Demand for Nigeria’s LNG surges

OVER 16 vessels have departed Onne Port with 950,000 metric tons of liquefied natural gas (LNG) valued at N354billion in the last few months to various destinations.

It was gathered that the Sines Port in Portugal alone took delivery of 141,000 cubic meters of the product.

It is the first batch of the 2020 exports by Nigeria as gas demand is on the increase in the ports of Spain, China, Portugal and Turkey.

The country is also the fourth largest producer of LNG in the world.

To further boost export of the cargo this year, the Nigeria Liquefied Natural Gas Limited (NLNG) has appointed one of Japan’s leading banks and the core unit of Sumitomo Mitsui Financial Group – Sumitomo Mitsui Banking Corporation (SMBC) and Guaranty Trust Bank Plc, as financial advisers, for Train 7 project estimated at between $10 billion and $12 billion.

It was learnt that the Train 7 project would be financed partly from NLNG balance sheet and through third party corporate loans from export credit agencies and some key International and local banks.

The company also stated that the cost of the Train 7 project was estimation, saying that the actual cost would be established after the Engineering, Procurement and Construction (EPC) contracts signings were completed.

On completion, it would increase the company’s production capacity at its plant on Bonny Island, Finima, Rivers State from 22 million metric tons to 30 million metric tons per year.

Train 7 is expected to create over 12,000 jobs at construction and on completion will generate more revenue to the government in dividends, taxes and feed gas purchases and will further reduce the level of gas flaring in the country

Sines Port had already taken delivery of 315,900 cubic meters of liquefied natural gas from Onne Port in the last six months.

Other vessels, according to the Nigerian Port Authority (NPA’s) shipping data, berthed in China, Spain and United States include LNG Lokoja in the last few months with, 66,000 tons; Maran Gas Olympias, 70,000tons; LNG Cross River, 63tons; LNG Borno, 66,000 tons; LNG Bayelsa, 63,000 tonnes; Castillo De Caldelas, 70000tons; Valencia Knutsen, 70,000tons; LNG Bonny II, 72,000tos; Catalunya Spirit, 65,000 tons; LNG Finima II, 72,000 tons and LNG River Niger, 63,000 tons.