NLNG to hit $ 12 bn in investments by 2007

Apr 20, 2005 02:00 AM

Investment in Nigeria's largest natural gas exploitation project, Nigeria Liquefied Natural Gas Limited (NLNG), will by 2007 reach $ 12 bn from its present value of $ 9 bn.
This was disclosed in a paper presented by the company's Managing Director, Mr Chris Haynes, at the fifth edition of Nigeria Oil and Gas Conference taking place in Abuja. He said by 2007, "the venture would comprise $ 12 bn of investment in processing facilities and ships and will be fed by an established and diverse pipeline system delivering gas from the Niger Delta -- offshore and onshore."

According to him, the gas company will also be constructing additional two new LNG trains by 2010 to bring its gas production facility to eight trains in an effort to further increase Nigeria's gas supply potentials.
"The projects cumulative capital expenditure of $ 12 bn will make it not only the one of the most important economic projects in Nigeria but the largest single privately undertaken project in Africa," Haynes noted.

He said the attraction to expand NLNG capacity stems from the fact of projected growth in demand for gas in Atlantic Basin markets which NLNG is keen on cashing in on to enable further value to added to Nigeria's abundant gas resources. Another factor is that the country is both strategically and geographically well situated in Atlantic Basin to supply LNG competitively and reliably to both United States and European markets, he said.
He said that Nigeria LNG is currently supplying gas on a long-term contracts to Europe and through the spot sale to the US and even into Asia-Pacific and has acquired a reputation of reliable gas supplier.

Haynes said the future portfolio of sales for LNG lies the availability of diverse customer, markets, contract terms and shipping arrangements which the company has to its advantage. He said on completion of the company's 5th and 6th trains by the end of the 2007. Nigeria's gas business would have grown to a 6-train LNG plant capable of producing 22 mm tpy of LNG and5 mm tpy of gas liquids (NGLs), thus making the company's Bonny facilities amongst the largest in the world.
"We are going to add another 2 trains to become a 30 to 40 mm tpy company by 2010", he said.

Source: This Day
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