Nigeria LNG targets 2015 for Train 7 project’s take-off

Barring any unforeseen circumstance, the Train 7 expansion project of Nigeria LNG Limited (NLNG), at Bonny Island, Rivers State would come on stream in 2015.

NLNG’s commitment to the project was made by its Chief Executive Officer and Managing Director, Babs Omotowa on Sunday, in Marmara, Turkey, at a ceremony to mark the delivery of the company’s 3000th cargo to Botas Petroleum and Pipeline Corporation of Turkey.

The delay in the Final Investment Decision (FID) on Train 7 has been eliciting concerns about the stability of gas supplies from upstream operators in the Nigerian oil and gas industry.

Already, NLNG has long-term gas supply agreements with three Joint Ventures (JVs) for the supply of natural gas to the existing gas plant.

These JVs are Shell Petroleum Development Company of Nigeria (SPDC), Elf Petroleum Nigeria now Total Exploration Production Nigeria (TEPNG) and Nigeria Oil Company Limited (NAOC).  The agreements ensure efficient gas supply to the plant throughout the lifespan project.

Presently, with six trains in full operation, the total gas requirement of the company’s Bonny Island natural gas liquefaction plant is about 3500 million metric standard cubic feet per day.

Gas is transmitted to NLNG complex through six independent gas transmission systems.

Omotowa added: “We hope to get assurance for gas supply by April this year.  By 2015 or 2016, the Train 7 project may come on stream. Security of supply is necessary and we will continue to satisfy our customers.  New projects are expensive with over 500 per cent increase.  This is what we are seeing with Train 7 project”.

He said that despite the shale gas boom in the United States and some parts of Europe, demand for LNG would continue to grow globally. “We expect energy demand to double in the next 20 years. We also expect supply to increase. We see a situation whereby supply and demand will drive the market.  The demand for NLG will increase and displace other non-environmentally friendly sources of energy”.

The delivery of LNG Lokoja to Botas Petroleum Corporation also marked the celebration for the 3,000th LNG export by the Nigeria LNG Limited.

Omotowa said that Nigeria LNG hopes to strengthen the existing relationship with Botas.

Speaking on the 3,000th LNG cargo, he said: “We value our relationship with Botas. We have a positive and interesting story to tell.  We wish to continue to the relationship we started with the company since 1999. We are proud of what we have been able to achieve over the years.  We are looking forward for more rewarding relationship with Botas. We believe that despite the challenges which may exist today, the future will hold business opportunities for the energy industry globally.

“Today, we deliver our 3,000th cargo of LNG to Botas petroleum. We take pride in the fact that this delivery demonstrates the consistency and reliability of NLNG as a world-class energy supplier. It also underscores the excellent relationship we have with our customers.

“I also wish to recognize the diligence and dedication of our staff, the kind support the government, our shareholders and our loyal customers. We remain fully committed to our aspiration to help harness the nation’s gas resources, and our vision to help build a better Nigeria”

The Chief Executive Officer of Botas Petroleum Corporation, Mehmet Konuk, stated that delivery of the cargo was a culmination of almost 20 years of enormous collective effort and cooperation, which began in mid 1990.

“As we are gathered here to celebrate the NLNG ‘s 3000th vessel to be discharge, we are happy to express our utmost satisfaction and gratitude as a customer and we hope to see more fruitful business relationship in the future”, he said.