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Nigeria LNG Limited to Commence Domestic Supply of LNG

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  • Nigeria LNG Limited to Commence Domestic Supply of LNG

After decades of exporting liquefied natural gas from the country, the Nigeria LNG Limited has said it is engaging market players to begin domestic supply of the commodity.

The NLNG, which is jointly owned by the Federal Government and three international oil companies, was established 1989 to harness Nigeria’s vast natural gas resources and produce LNG and natural gas liquids for export.

The Managing Director/Chief Executive Officer, NLNG, Mr Tony Attah, disclosed the new move in a presentation at a virtual business forum of the Nigerian Gas Association.

Attah, who was represented by the firm’s General Manager, Production, Mr Adeleye Falade, described Nigeria as a gas nation with some oil.

According to him, the country has over 200 trillion cubic feet of proven natural gas reserves, the ninth largest in the world.

He said there were 36 off-takers of liquefied petroleum gas in the country being supplied by the company, adding that the NLNG “is engaging market players to kick-start domestic LNG scheme”.

Attah said it was time for Nigeria to unleash its gas potential.

The company told our correspondent earlier this month that the market realities of low prices and economic lockdown induced by COVID-19 scourge had changed the business landscape including LNG business.

“NLNG continues to closely monitor the global impact of COVID-19 and adapt as appropriate to meet our contractual obligations and achieve resilience,” it said.

The NLNG is jointly owned by the Federal Government, represented by the NNPC (49 per cent), and three IOCs, namely Shell (25.6 per cent), Total (15 per cent) and Eni (10.4 per cent).

The Chairman, National Gas Expansion Programme, Ministry of Petroleum Resources, Dr Mohammed Ibrahim, said at the forum that the fundamentals for Nigeria’s gas development were strong.

“The National Gas Policy, gas commercialisation and the network code will help unleash its hidden potential,” he said.

According to him, 7.99 billion standard cubic feet of gas was produced in the country on May 7, 2020, out of which 3.51 billion scf was exported, 1.47 billion scf went to the domestic market, 2.54 billion scf used for re-injection/fuel and 534 million scf was flared.

He said the NGEP was conceived and designed to serve as a catalyst for adding value to the vast natural gas reserves in the country.

Ibrahim said, “Africa currently holds a share of around six per cent in global marketed gas production. That share will rise to more than 10 per cent by 2050, if not more.”

He said the current short-term shocks and natural gas price environment would not have any considerable impact on the long-term projections.

“A significant share of the increase in the marketed production will come from Mozambique and Nigeria. Nigeria’s gas reserves (200tcf) indicates an inherent possibility of exploring our gas reserves for at least the next 100 years with the potential for a further 600tcf in unproven reserves,” he said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Once Again The National Grid Collapsed

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Nigeria’s electricity transmission system, also known as the National grid, has suffered another system collapse, plunging Lagos, the country’s commercial capital, Kano and other major cities into a blackout.

The collapse, which occurred about 11.00 am on Tuesday, was confirmed by two of the country’s electricity distribution companies in separate messages to their customers.

“We regret to inform you that the power outage being experienced across our franchise – Kaduna, Sokoto, Kebbi and Zamfara states – is as a result of the collapse of the national grid,” Kaduna Electric said on Twitter.

Eko Electricity Distribution Company Plc, in a text message to its customers, said: “Dear customer, there is a partial system collapse on the national grid. Our TCN partners are working to restore supply immediately. Please bear with us.”

The grid, which is being managed by the government-owned Transmission Company of Nigeria, has continued to suffer system collapse over the years amid a lack of spinning reserve that is meant to forestall such occurrences.

Spinning reserve is the generation capacity that is online but unloaded and that can respond within 10 minutes to compensate for generation or transmission outages.

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Economy

FG Consider Diversification To Generate Revenue

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As revenue from oil nosedives following incessant global price fluctuations, the Federal Government is now channeling efforts to the development of minerals in the mines and steel industry to shore up foreign exchange earnings.

Officials of the Federal Ministry of Mines and Steel Development said on Wednesday that while there had been concerted efforts to develop various minerals in the sector, much emphasis had been placed recently on the development of bitumen, barite and gold.

They told our correspondent in Abuja that the government through the mines and steel ministry was striving to diversify the Nigerian economy away from oil as the major foreign exchange earner for Nigeria.

They also confirmed that large quantities of gold had been discovered in various locations in Zamfara and Osun states.

Asked if the government had initiated programmes to explore the minerals and boost revenues now that the country’s income had plunged, the Special Assistant on Media to the Minister of Mines and Steel Development, Ayodeji Adeyemi, replied in the affirmative.

He said, “Indeed, the ministry has the mandate to generate revenue and diversify the economy through the mines sector.

“And bitumen is one of the key resources which the nation is abundantly endowed with, that has been identified for strategic development.”

To buttress his position, Adeyemi shared some recent presentations of the Minister of Mines and Steel Development, Olamilekan Adegbite, where the minister said his ministry was gathering data on some bitumen fields across the country to attract investors.

“A lot of people are interested in bitumen, which is coming from both local and foreign investors. However, we are still acquiring data in some of the fields,” the minister stated.

On barite, the minister said the mines and steel ministry was working on raising the quality of barite produced in Nigeria to an internationally acceptable standard, as certified by the American Petroleum Institute.

Adegbite said his ministry had contracted a consultant to help raise the standard in the local production of barite to ensure that oil industry players make use of barite produced in Nigeria as against importing the commodity from other countries.

He said, “Barite is a critical weighting material in drilling fluids used in the oil industry. We have a lot of barites but the issue is that it is not produced to API standards. However, we are putting a system in place which would be ready to launch in about July.

“We have got the millers who can produce barite to API standard. Hence we will be able to compete with foreigners and it would save Nigeria a lot of foreign exchange in import substitution.”

On the development of gold, officials at the ministry further stated that the commodity had been aggregated for the production of bullion bars and that this was the first time that such aggregation was happening in Nigeria.

They stated that the gold was sourced from artisanal miners, while the final refining to bullion was done in Turkey.

The sources stated that the ministry had registered two refineries that would now refine to LBMA standard when they come on stream. LBMA is the de facto standard, trusted around the world.

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Economy

Nigeria Sovereign Investment Authority Generates N160.06 Billion in 2020

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The Nigeria Sovereign Investment Authority (NSIA) generated revenue of N160.06 billion in 2020, according to the latest audited financial reports announced by the Managing Director of NSIA Mr. Uche Orji.

The NSIA income came from devaluation gain of N51 billion, and core income of N109 billion compared to N33.07 billion in 2019.

But Orji lamented: “Covid-19 adversely affected logistics around infrastructure projects, especially the toll road projects and the presidential fertiliser initiative.

Despite the pandemic, the Authority achieved 33 percent growth in Net Assets to N772.75 billion compared to the previous year’s performance of N579.54 billion.

Orji said the NSIA “received additional contribution of $250 million; and provided first stabilisation support to the Federal Government of $150 million withdrawn from Stabilisation Fund last year.”

The same year, the NSIA received $311 million from funds recovered from the late General Abacha from the United States Department of Justice and Island of Jersey for deployment towards the Presidential Infrastructure Development Fund (PIDF) projects of Abuja-Kaduna-Kano Highway, Lagos Ibadan Expressway and Second Niger Bridge.

In response to COVID-19, Orji said: “NSIA partnered the global Citizen, a not-for profit group, to form the Nigeria Solidarity Support Fund. Separately NSIA acquired and distributed oxygen concentrators to the 21-teaching hospital as part of corporate social responsibility; in addition to staffing support to the Presidential taskforce on COVID-19.”

In 2020, the NSIA “invested additional capital into NG Clearing, the first derivative clearing house in Nigeria to maintain NSIA’s shareholding at 16.5 per cent following the company’s rights issue of 2020″ Orji said.

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