As NLNG Train 7 FID dithers, Cameroon ships first LNG cargo

Nigeria’s neighbour, Cameroon, through its Golar project recently shipped its first liquefied natural gas (LNG) cargo. The $1.2 billion project is the second floating LNG facility to start production in the world after Malaysia launched its own vessel in 2016.

Cameroon’s first LNG shipment was exported by Gazprom Marketing and Trading (GMT), which bought the entire output of the project for eight years, using the Galicia Spirit tanker.

The first LNG was initially due in the second half of last year before being pushed back to late April this year. However, it was not until May that a tanker docked to load about 138,000 cubic metres of LNG, according to market intelligence firm Kpler.

The plans to build the NLNG Train 7 have remained on the drawing board for over eight years. Though partners in the NLNG said they hope to take a final investment decision (FID) on building the much awaited 7th train by the fourth quarter of this year, the entrance of Cameroon into the NLNG space should be a wakeup call.

NLNG’s Train 7 is projected to increase LNG production at the plant to 30 million metric tonnes per year, from its current capacity of 22 million MT/year from six trains. The company had said the project will create 18,000 new jobs for Nigerians.

While the wait is on, competition has heightened even within Africa as other countries in the region are either pressing forward with their own LNG projects or working out alliances.  A final investment decision (FID) for the Tortue development offshore Mauritania and Senegal, which includes a floating LNG production unit, is on the cards, according to project partner Kosmos Energy.

“FID of the first 2.5 million ton phase is expected around the end of the year,” Andy Inglis, Chief Executive of Kosmos, said.

Woodlands-based Anadarko said its Mozambique LNG project has moved forward in the first quarter of 2018, meeting its near-term marketing objective.

Also Equatorial Guinea and Togo recently signed a cooperation agreement to facilitate the trade in LNG between the two countries. The new memorandum of understanding creates a framework for Togo to import LNG produced in Equatorial Guinea, a part of the LNG2Africa initiative, in which Equatorial Guinea is promoting the utilization of LNG within Africa, using gas sourced and processed in Africa.

FRANK UZUEGBUNAM