INDECISION ON IMPORTANT INVESTMENTS AFFECTS SEVERAL LNG PROJECTS
Originally published on July 25th, 2018
As competition increases globally in the Liquefied Natural Gas market, Nigeria experiences setback as three LNG projects have stalled.
Olokola LNG, Brass LNG and the NLNG’s Train 7 have experienced regression as a result of the delay in taking final investment decision by the stakeholders.
Recall that earlier this month, the Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni signed the front-end engineering design contract of the Train 7 of the Nigeria LNG Limited, with the FID expected in the fourth quarter of the year.
However, the OK LNG project was suspended because major international investors – BG, Shell and Chevron exit the project except NNPC. The Brass LNG project which was meant to be built by NNPC and facilitated by ConocoPhillips and Eni Group failed as well because of ConocoPhillips’ withdrawal in 2013.
Commenting on this, the LNG chairman, SPE Nigeria Council, Mr Chikezie Nwosu emphasized the need for Nigeria to diversify the economy by maximizing the full potentials of its gas resources.
Moritz Abazie, Chairman of Strides Group, described gas as the energy of the future despite the threat of alternative energy sources. He also noted that Nigeria was the fourth largest LNG exporter in 2016 and explained that delay in taking important investment decisions on several LNG project is responsible for the retrogression the industry is currently facing.