Connect with us

Economy

NLNG Predicts Demand Growth from China, India

Published

on

markets energies crude oil
  • NLNG Predicts Demand Growth from China, India

The Nigeria Liquefied Natural Gas Limited (NLNG) has stated that with the current LNG demand growth from China, India, and some Asian markets, there would be a boost in LNG supplies in 2017.

The company said while the global LNG market experienced some very difficult periods in 2016 as a result of the dip in oil prices, some Asian markets were beginning to take up centre stages in LNG demand growth just as demand from European market could likely drop within the period.

The Managing Director of NLNG, Mr. Tony Attah, stated these during an interaction with journalists on the sidelines of the just concluded 2017 edition of the Nigeria Oil and Gas Conference and Exhibition (NOG) in Abuja.

Attah said in his assessment of the LNG market in 2016, as well as the operations of NLNG, that the market was down in 2016, but added that there was hope that there would be a better performance in 2017.

“People will think it was only oil price that was down, gas price was down as well but we are very excited at the recent development with the improvement in the market. We are also seeing some improvement upwards but we are also seeing improving demands in the India, China and some Asians are beginning to take centre stage again. We have to rely on Europe as the central point, which is the sink to receive in the phase of reduced demand. So, last year was tough year and it forced a lot of tightening but we will see more hope in 2017,” Attah explained.

He also spoke on a recent gas pipeline explosion that occurred within the precinct of the company’s operation in Rivers State, saying that the explosion had nothing to do with any of its gas pipelines or infrastructure.

“Let me first correct the impression that the explosion was on NLNG line. I read a few things from saying that NLNG pipeline exploded. No! The pipeline does not belong to us. The one that was impacted was not ours, but it is true that we also have a line in the same corridor but in this instance, it is not our line,” he clarified.

“But we are partnering with the company whose line was impacted, to ensure that we restore operations. We are not receiving gas from them at moment because of the situation but we are working to have them come back because if they are back we are sure to receive more supply to fill our trains one to six as you can expect,” he added.

Asked when the affected lines could come back on stream, as well as the likely financial impact the incident may have cost NLNG, Attah said it would expect the lines to be restored within the next one or two weeks. He then added that he would need to crosscheck if there were any financial impacts on NLNG from the explosion.

“I am not aware of anyone’s death as a result of the explosion. This line is in a very remote area, a minimum of two to four kilometers from habited location. It was quite an unfortunate incident for this company but it is certainly not an NLNG line. I must emphasise that to you,” he said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

Published

on

Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

Continue Reading

Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

Published

on

Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

Continue Reading

Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

Published

on

Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending