With growing competition in the global Liquefied Natural Gas market, two LNG projects in Nigeria have continued to face an uncertain future.

Three LNG projects in Nigeria – Olokola LNG, Brass LNG and the NLNG’s Train 7 – have suffered setback as a result of the delay in taking final investment decision by the stakeholders. Earlier this month, the Nigerian National Petroleum Corporation, 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 stalled because all the international oil companies (BG, Shell and Chevron) withdrew from the project, with only the NNPC left. The Brass LNG project, which was designed to produce 10 million metric tonnes per annum, was to be built by the NNPC, Total, ConocoPhillips and Eni Group. But ConocoPhillips withdrew from the project in 2013.

The Chairman, SPE Nigeria Council, Mr Chikezie Nwosu, recently said, “The OKLNG and Brass LNG projects cannot be allowed to die. There are people from outside Nigeria who are looking to continue to develop their LNG plants through taking gas resources from Nigeria. Other countries are saying, ‘If you’re not using your gas, please bring it to us; we have need for it.’ We can commercialise it. The government needs to wake up.”

Source: The Punch

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