By Eyo Nsima
African Energy Chamber, AEC, has predicted a deficit in 2024, despite Nigeria’s LNG Train 7 and other new projects.
In its new report, tagged: ‘The State of African Energy 2022’ obtained by The Daily, www.thedaily-ng.com, AEC, stated: “For the next two years, there is sufficient LNG supply to satisfy the demand, as new projects come online in 2022 such as Coral FLNG in Mozambique, Tangguh Train 3 in Indonesia, and Calcasieu Pass in the US.
“During this time, LNG demand is expected to grow at a healthy CAGR of 5%. Despite the start-up of key LNG projects including Arctic LNG 2, Golden Pass, Nigeria LNG Train 7 and Qatar’s North field expansion project, a supply deficit is expected from 2024 onwards.
“This is driven mainly by strong demand resulting from gas-fired power generation as increased environmental pressure stymies coal-fired generation.”
Similarly, the Nigeria LNG Limited, also stated: “NLNG has delivered over 5,000 LNG cargoes to buyers around the world by engaging the best production practices, earning the company accolades as one of the most reliable plants in the world.
“Having made great strides in the past, our focus is now on our future growth. We are fully committed to our expansion programme: NLNG Train 7 Project which will increase our production capacity by 35% from the current 22 Million Tonnes Per Annum (mtpa) to 30mtpa.
“This expansion will ensure that Nigeria, with its significant gas reserves (202 tcf of proven gas reserves, the 9th largest in the world) remains a top, reliable and preferred supplier of LNG in the ever-expanding energy world.
“On 27th December 2019, NLNG’s Shareholders took Final Investment Decision (FID) for the Project and on 13th May 2020 awarded the Engineering, Procurement and Construction (EPC) Contracts for the Project to SCD JV Consortium, comprising affiliates of Saipem, Chiyoda and Daewoo.
“On 15th June 2021, the President of the Federal Republic of Nigeria, Muhammadu Buhari, GCFR, flagged off the construction of Nigeria LNG Limited’s (NLNG) Train 7 project during the groundbreaking ceremony at the Company’s plant site on Bonny Island, Rivers State.
“The foundation stone was laid on behalf of President Buhari, who flagged the project virtually, by the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva, supported by the Executive Governor of Rivers State, Barr. Nyesom Wike CON, represented by Deputy Governor, Dr. (Mrs.) Ipalibo Harry Banigo; the Amanyanabo of Grand Bonny Kingdom, His Majesty, King Edward Asimini William Dappa Pepple III, Perekule XI; Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari; the Chairman, NLNG Board of Directors, His Majesty Dr. Edmund Daukoru, NLNG’s Managing Director/CEO, Engr. Tony Attah; and NLNG’s Deputy Managing Director, Engr. Sadeeq Mai-Bornu, amongst others.”
