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Nigeria Backs Down On Big LNG Export Ambitions.


It was not until mid-2007 that planners talked of JVs to raise Nigeria's LNG exports from 18m tons/year in 2007 to more than 80m t/y by 2016. Shell, world leader in the LNG business, was planning to raise the capacity of Nigeria Liquefied Natural Gas (NLNG) to 40m t/y if demand was to remain strong. Several other JVs under study until early 2009 had led some to expect Nigeria to overtake Qatar as the world's biggest LNG exporter. But in reality, things have turned differently and Abuja in October 2008 imposed a moratorium on gas supplies to NLNG's Train 6 which had raised its capacity to 22m t/y. Now there are question marks about Nigeria's other LNG projects.

A Nigerian gas pipeline in early 2009 began supplying Ghana and other neighbouring countries. A 30 BCM/year pipeline will be built to Europe through Algeria.

A government official in Abuja recently said Nigeria's reserves of natural gas were "over 600 TCF, plus 184 TCF already discovered". Yet Nigeria's domestic market is acutely short of gas and the country's energy crisis is quite serious (as explained in down5NigrEnBaseAug3-09).

COPYRIGHT 2009 Input Solutions Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.

Copyright 2009 Gale, Cengage Learning. All rights reserved. Gale Group is a Thomson Corporation Company.

NOTE: All illustrations and photos have been removed from this article.


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