Nigeria to become world's third largest gas exporter when new Bonny facility becomes operational in December

NIGERIA is set to become the world's third largest gas exporter once the planned Nigeria Liquefied Natural Gas (NLNG) starts operations on its latest facility due to be launched in Bonny in December.

Speaking on Bonny Island yesterday, Tayo Ogini, NLNG's general manager, production, said the company's ongoing plans to reach a final investment decision (FID) on its Train-7 project should kick off in December. He revealed this while making a presentation to Dr Ibe Kachikwu, the minister of state for petroleum resources, who visited the plant to see the progress made on the project so far.

According to the details Mr Ogini presented, Nigeria is presently the fourth largest exporter of gas in the world. He added that NLNG has six operational gas plants, with the first built in 1989 but by 2007 till date, plans to build Trains seven and are were shelved but this project will now get going in December.

Nigeria's current six trains have a combined capacity to produce 22 tonnes per annum (mtpa) of liquefied natural gas (LNG). Plans to invest $7bn on the Train-7 project would expand its production capacity to 30 mtpa making Nigeria the third largest exporter of gas in the world after Qatar and Australia.

Mr Ogini said the gas produced in Nigeria was world class, adding that the NLNG had built a reputation of reliability in its gas supplies around the world. According to Mr Ogini, the hub of crude oil exporters on the island, Shell, ExxonMobil and the NLNG can easily produce 2m of crude oil per day.

He added that Nigeria had 23 NLNG carriers which had sailed more than 4,000 cargoes making it the largest operation in Africa. Mr Ogini, said, however, said the companies were being faced by inadequate infrastructure, adding that with the three-year Bonny-Boro road project which NLNG had embarked on, would soon be addressed.

Responding, Dr Kachikwu commended the NLNG management for its efficiency, saying the company was a testament to the fact that things could be properly done in Nigeria. He recalled that during the cash crunch of 2016, NLNG saved the day and helped to avert a shutdown of the nation’s economy.

According to the minister of state, the Train-7 project is fantastic but Nigeria is not yet 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.

Dr Kachikwu, who also inspected the facility, 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 ahead.