Nigeria set to expand LGN capacity by a third

NIGERIA is taking its first steps to expand its liquefied natural gas (LNG) capacity by a third, outlining a $12 billion (R161.6bn) programme to help it keep up with the world’s biggest producers of the fuel.

Nigeria LNG, a venture involving the state-owned oil company and three oil majors, signed engineering and design contracts for a seventh facility on the nation’s Atlantic coast.

Among the contractors participating are Saipem, TechnipFMC and Chiyoda. A final investment decision could be taken later this year.

Nigeria is joining nations from the US to Australia in increasing output of the fastest-growing fossil fuel to help meet rising demand from China to the Middle East.

Its latest plan would boost production to 30 million tons by 2024 from 22 million tons now. Total, a Nigeria LNG shareholder, said last week that the plant expansion is “very important” as the market is “booming again.”

“Our vision is to be a global player that helps to build a better Nigeria,” Tony Attah, Nigeria LNG’s chief executive, said in London. “We are looking forward to the growth. When I am talking about growth I am talking about Train 7. We have the support we need, we have the support from the shareholders, from the government, from the board of directors.”

Qatar, Australia and the US will probably account for 60 percent of global LNG supply by 2023, according to the International Energy Agency in Paris.

Nigeria, which supplied the world with 7 percent of the super-chilled fuel last year, doesn’t want to miss out.

Keeping up will require a huge investment. Train 7 will cost as much as $6.5bn to build, with another $5bn to be spent on wells and pipelines needed to supply the plant.

Nigeria LNG is seeking $7bn from the global financial markets for sustainability of its operations and the expansion. – Bloomberg