NLNG Train 7 plans still on course

The Nigeria Liquefied Natural Gas (NLNG) train 7 project is still on course. This was disclosed by Isa Mohammed Inuwa, deputy managing director, NLNG to BusinessDay West Africa Energy in Bonny Island recently.

“We are keeping train 7 plans warm and by that it simply means our designs are in place, we look at them once in a while in relation to development in technology, the site is there and because of the nature of the soil, we have to continuously compact, we have our FEED, front-end engineering and designs. I think the point is that NLNG and the shareholders are looking at the market and I’m sure we will take a decision at an appropriate time”, Inuwa said.

Funding

On the heels of delayed final investment decision, Inuwa said “funding will not be an issue. As long as the market is favorable for the end product and as long as the economics are right, we will get the funding. Don’t forget that NLNG have reputation in the financial market; we are a reliable debtors and I don’t think that in the current climate where there is so much capital out there, financial constraint would be an issue”.

Potentials

Chima Isilebo, general manager, production, NLNG, gave an overview of the NLNG’s production performance as well as challenges it is facing in the global LNG market. He highlighted the fact that, “in line with the federal government’s vision of generating as much revenue from gas as from oil, NLNG starting out with a Base Project of only two trains with a capacity for about six metric tonnes of LNG per annum now produces 22million metric tonnes of LNG with progressive plans for a seventh train, expected to raise production to about 30million tonnes. NLNG has successfully pioneered gas monetization and is currently the 4th largest supplier of LNG in the world, making it a large-scale LNG plant by world standards. NLNG used to be the 3rd largest supplier but it is gradually losing the market to international competitors who have continued to expand their businesses. It is therefore imperative that NLNG increases its production in order not to lose more market share.”

Nigeria LNG Limited is the most significant arrow-head of the federal government’s continuing efforts to eliminate gas flaring and derive value from the country’s 187 trillion cubic feet of proven gas reserves. Official statistics indicate that Nigeria’s gas flaring profile, previously one of the highest in the world has further reduced from 25 to 11 percent.

Frank Uzuegbunam