- Nigeria’s Gas Revenue Drops by 50.2 Percent
Gas proceeds from the Nigeria Liquefied Natural Gas and others have dropped by 50.2 per cent from $169.728m in January, the latest data from the Nigerian National Petroleum Corporation have showed.
The NNPC put gas proceeds from the NLNG, Escravos Gas to Liquid, Natural Gas Liquids and NGAS in October at $84.575m.
“Export gas sales and NLNG feedstock accounted for $84.57m i.e. 18.97 per cent contribution to the Federation Account compared with 31.21 per cent contribution in September,” the corporation said in its latest monthly report.
The dip in gas revenue was partly as a result of the sustained fall in global natural gas prices since last year and increased supply in the market.
From a peak of $6 per million British thermal unit last year, the natural gas price has fallen below $2 per mmBtu this year. It was trading around $1.98 per mmBtu.
The NLNG Limited had recently warned that its revenue was being threatened at the international market amid the fall in global oil prices.
Many of the global natural gas markets are linked to oil prices, which have fallen by more than 65 per cent since June last year.
The firm expressed worry over the impact that the fall in crude prices was having on its revenue, stressing that the entry of the United States and Australia into the LNG market was “a real cause for concern.”
The NLNG stated, “The recent fall in crude oil prices from above $100 per barrel in early 2014 to below $60 per barrel in early 2015 and its impact on global LNG/gas prices as well as the demand/supply positions in both our primary and secondary markets in the Atlantic and Pacific Basins have had a significant impact on our revenues and profitability.
“The trend, which will persist till the end of 2015, and which may even worsen going into 2016 with the entry of US and Australian LNG volumes into the market, is a real cause for worry.”
The NLNG, in addition to its traditional deliveries to Europe and the United States, supplies LNG to South America, with deliveries to Mexico and Brazil; and to Asia and the Middle East, with deliveries to Japan, South Korea, India, China, Taiwan, Thailand and Kuwait.
The company, which currently has LNG production capacity of 22 million metric tonnes per annum, is owned by the Federal Government, represented by the NNPC (49 per cent), Shell Gas BV (25.6 per cent), Total LNG Nigeria Limited (15 per cent), and Eni International (10.4 per cent).
Oil Prices Slide as U.S. Crude Stockpiles Surge, Heightening Demand Concerns
Oil prices declined on Thursday as concerns over demand intensified due to a larger-than-anticipated build in U.S. crude stockpiles.
Brent crude oil, against which Nigerian oil is priced, dropped by 0.5% to $83.25 a barrel while U.S. West Texas Intermediate crude oil fell by 0.3% to $78.28 a barrel.
The Energy Information Administration’s report revealed a substantial increase in U.S. crude oil stockpiles by 4.2 million barrels to 447.2 million barrels for the week ending February 23rd.
This surge surpassed analysts’ expectations and marked the fifth consecutive week of rising inventories.
While gasoline and distillate inventories witnessed a decline, concerns regarding a sluggish economy and reduced oil demand in the U.S. were amplified.
Satoru Yoshida, a commodity analyst with Rakuten Securities, highlighted that the significant stockpiles have heightened investor worries.
Moreover, the anticipation of delayed U.S. interest rate cuts further weighed on market sentiment, potentially undermining oil demand.
Traders have adjusted their expectations for rate cuts, with an easing cycle predicted to commence in June rather than March as previously anticipated.
Market participants await the U.S. personal consumption expenditures price index for insights into inflation trends, while the possibility of an extension of voluntary oil output cuts from OPEC+ looms over price dynamics, amid lingering uncertainty in the demand outlook and geopolitical tensions in the Middle East.
Crude Oil Shortage Threatens Dangote, Government Refineries, Minister Raises Alarm
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has sounded a clarion call over a looming crude oil shortage that threatens the operations of the newly inaugurated Dangote Petrochemical Refinery and government-owned refineries in Nigeria.
Addressing stakeholders at the seventh edition of the Nigeria International Energy Summit in Abuja, Minister Lokpobiri expressed concerns that unless deliberate efforts are made to increase investments and crude oil production, these refineries may struggle to obtain enough feedstock for petroleum product manufacturing.
The Dangote refinery, a colossal project spearheaded by Dangote Industries Limited, has a daily requirement of up to 650,000 barrels of crude oil, while government-owned refineries could need approximately 400,000 barrels.
However, the current pace of crude oil production and investment in Nigeria falls short of meeting these demands.
Minister Lokpobiri highlighted the need to ramp up production and attract investments in the upstream sector to ensure adequate feedstock supply for the refineries.
He emphasized the importance of efficiently utilizing Nigeria’s abundant oil and gas reserves to enhance domestic energy security and economic prosperity.
Furthermore, the minister underscored the significance of investing in energy infrastructure and transitioning towards more environmentally friendly practices to address Nigeria’s energy needs effectively.
The alarm raised by Minister Lokpobiri underscores the urgency for strategic interventions and collaborative efforts to mitigate the impending crude oil shortage and secure the future of Nigeria’s refining industry amidst evolving global energy dynamics.
NNPCL Pledges End to Nigeria’s Energy Scarcity Within a Decade
The Nigerian National Petroleum Company Limited (NNPCL) has announced a bold initiative aimed at ending Nigeria’s persistent energy scarcity within the next decade.
Mele Kyari, the Group Chief Executive Officer of NNPCL, revealed this ambitious plan during the opening ceremony of the seventh Nigerian International Energy Summit in Abuja.
Kyari’s announcement comes as a beacon of hope for millions of Nigerians grappling with chronic power shortages and energy deficiencies.
In his statement, Kyari expressed confidence that all issues related to energy scarcity in the country would be resolved within the next 10 years.
Assuring stakeholders of NNPCL’s unwavering commitment, Kyari emphasized the company’s dedication to collaborating with partners to bridge the energy deficit gap and foster prosperity for all Nigerians.
He highlighted NNPCL’s pivotal role as a key partner to oil-producing companies in Nigeria, facilitating the divestment of international oil companies from onshore and shallow water assets in the country.
Furthermore, Kyari underscored NNPCL’s statutory mandate as the enabler of national energy security, emphasizing the importance of sustainable production from divested assets to ensure energy security for Nigerians.
In addition to addressing domestic energy challenges, NNPCL is also exploring avenues for sustainable energy investment across Africa.
Kyari revealed the company’s intention to invest in the proposed African Energy Bank, aiming to secure funding for energy projects on the continent and guarantee regional energy security.
The event, attended by prominent stakeholders including government officials and representatives from international organizations, marks a significant step towards reshaping Nigeria’s energy landscape and fostering economic development through improved energy access.
As NNPCL charts its course towards energy abundance, Nigerians remain cautiously optimistic about the prospects of a brighter energy future.
Naira3 days ago
Black Market Dollar to Naira Exchange Rate Today, February 26th, 2024
Forex4 weeks ago
Dollar to Naira Black Market Exchange Rate February 1st, 2024
Company News4 weeks ago
UAC Posts N12.7 Billion Profit Before Tax in 2023
Forex4 weeks ago
Dollar to Naira Black Market Exchange Rate February 2nd, 2024
Banking Sector4 weeks ago
CBN Accuses Banks of Hoarding $5 Billion in Foreign Currencies
Naira3 weeks ago
Dollar to Naira Black Market Today, February 5th, 2024
Forex4 weeks ago
Dollar to Naira Black Market Exchange Rate January 31st, 2024
Forex3 weeks ago
CBN Mandates Nigerian Banks to Pay International Transfers in Naira