Libya ramps up gas development as Nigeria’s Train 7 waits

Libya might still mean civil strife to some but the North African country is pushing on with development of natural gas projects as Nigeria’s Train 7 still awaits final investment decision for take-off.

NLNG Train-7 is a gas production expansion project valued at over $7 billion by the Nigeria Liquefied Natural Gas Limited (NLNG) located in Bonny Island in Rivers. While this project awaits FID Libya is attracting foreign investment into its natural gas exploration and production.

Libya is set to complete the second phase of its offshore natural gas project in 2018, state owned National Oil Corporation has said in a statement following meeting between Mustafa Sanalla, NOC chairman and Claudio Descalzi, Eni chief executive officer (CEO).

Phase 2 of the project completes the development of the largest offshore producing gas field in Libya, increasing production potential by 400 million standard cubic feet per day (MMscfd). Phase 2 will be completed between September and October, bringing total field production to 1,100 MMscfd. Bahr Essalam, located about 120 km northwest of Tripoli, contains over 260 billion cubic metres (Bcm) of gas. This is delivered through the Sabratha platform to the Mellitah onshore treatment plant before principally being used to supply the national network.

Chairman of the Presidential Council of Libya and Prime Minister of the Government of the National Accord, Fayez Al-Saraj, attended the opening ceremony.

Eni’s current projects in the country include the Wafa plant, with first gas scheduled to come on stream in next few days. It also aims to restart activities of the Exploration and Production and Sharing Agreement in the first half of 2019. Eni currently produces 280,000 barrels of oil equivalent per day in Libya.

In July, the NOC and Eni had announced that Mellitah Oil & Gas, Eni and NOC joint venture Company (50/50) has started production from the first well of the offshore Bahr Essalam Phase 2 project. This comes just three years after the final investment decision. Two further wells will begin production within a week. An additional seven wells will come onstream by October 2018.

In August, Kemi Adeosun, former minister of Finance, said the federal government is committed to supporting the commencement of the Train-7 initiative driven by the Nigerian Liquefied Natural Gas (NLNG) plant during a visit to the NLNG plant in Finima Bonny Local Government Area of Rivers State.

She said the most important critical need from the government as a shareholder was support for the investment to commence.

Tayo Oginni, general manager, Production at NLNG said that the delay in investing in Train-7 would drop Nigeria to Number 10 from Number four in gas production by 2025.