Nigeria earns N295 billion from Liquified Natural Gas sale

Refinery
Refinery

Eleven vessels have departed Onne Port with 740,000 metric tonnes of liquefied natural gas valued at N294.66 billion ($814 million) since the beginning of the month to various destinations.

It is the first batch of exports by Nigeria in 2020 as gas demand is on the increase in Spain, China, Portugal and Turkey.

Nigeria is currently the fourth largest producer of gas in the world.

It was learnt that the Sines Port in Portugal alone is expected to take delivery of 141,000 cubic meters of liquefied natural gas this week.

The port had already taken delivery of 315,900 cubic meters of liquefied natural gas from Onne Port in the last six months.

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Findings revealed that LNG Bayelsa, built by South Korean shipyard, Hyundai Heavy Industries, in 2003, is scheduled to dock at the gas terminal tomorrow, Wednesday, January 22, 2020.

Other vessels, according to the Nigerian Port Au- thority (NPA)’s shipping data, that are expected to berth in China, Spain and United States between January and February 2020 include LNG Lokoja, 66,000 tonnes; Maran Gas Olympias, 70,000 tonnes; LNG Cross River, 63 tonnes; LNG Borno, 66,000 tonnes; LNG Bayelsa, 63,000 tonnes; Castillo De Caldelas, 70,000 tonnes; Valencia Knutsen, 70,000 tonnes; LNG Bonny II, 72,000 tones; Catalunya Spirit, 65,000 tonnes; LNG Finima II, 72,000 tonnes and LNG River Niger, 63,000 tonnes.

To further boost export of the cargo this year, Nigeria Liquefied Natural Gas Limited (NLNG) has appointed one of Japan’s leading banks and core unit of Sumitomo Mitsui Financial Group – Sumitomo Mitsui Banking Corporation (SMBC) and Guaranty Trust Bank Plc., as financial advisers for Train 7 project estimated at between $10 billion and $12 billion.

It was learnt that the Train 7 project would be financed partly from NLNG balance sheet and will also be partly financed through third party corporate loans from export credit agencies and a number of key international and local banks.

The company also stated that the present cost of the Train 7 project was an estimation, saying that the actual cost would be established after the Engineering, Procurement and Construction (EPC) contracts signings were completed.

Already, the Final Investment Decision (FID) of the project had been taken on December 27, 2019 with the hope that Train 7 would be completed within five years from start of construction.

On completion, it is expected to increase the company’s production capacity at its plant on Bonny Island, Finima, Rivers State from 22 million metric tonnes to 30 million metric tonnes per annum.

Train 7 is expected to create over 12,000 jobs at construction and on completion will generate more revenue to the government in dividends, taxes and feed gas purchases and will further reduce the level of gas flaring in Nigeria.

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