- 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.
COVID-19 Vaccine: Crude Oil Extends Gain to $48 Per Barrel on Wednesday
Oil prices rose further on Wednesday as hope for an effective COVID-19 vaccine and the news that the United States of America’s President-elect, Joe Biden has begun transition to the White House bolstered crude oil demand.
Brent crude oil, a Nigerian type of oil, gained 1.63 percent or 78 cents to $48.64 per barrel at 11:50 am Nigerian time on Wednesday.
The United States West Texas Intermediate (WTI) crude oil rose by 1.36 percent or 61 cents to $45.52 per barrel.
OPEC Basket surged the most in terms of gain, adding 3.16 percent or $1.37 to $44.75 per barrel.
This was after AstraZeneca, Moderna and Pfizer-BioNTech announced the positive results of their trials.
Moderna and Pfizer had claimed over 90 percent effective rate in trials while AstraZeneca said its COVID-19 vaccine was 70 percent effective in trials but could hit 90 percent going forward.
“The possibility of having a vaccine next year increases the odds that we’re going to see demand return in the new year,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
Also, the decision of President-elect Joe Biden to bring Janet Yellen, the former Chair of Federal Reserve, back as a Treasury Secretary of the United States is fueling demand and strong confidence across global financial markets.
“President-elect Biden’s cabinet choices, particularly Janet Yellen’s Treasury Secretary position, are adding to upside momentum across a broad space of asset classes,” said Jim Ritterbusch of Ritterbusch and Associates.
Seyi Makinde Proposes N266.6 Billion Budget for Oyo State in 2021
The Executive Governor of Oyo State, Seyi Makinde, has presented the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly on Monday.
The proposed budget titled “Budget of Continued Consolidation” was said to be prepared with input from stakeholders in all seven geopolitical zones of Oyo state.
Governor Makinde disclosed this via his official Twitter handle @seyiamakinde.
According to the governor, the proposed recurrent expenditure stood at N136,262,990,009.41 while the proposed capital expenditure was N130,381,283,295.63. Bringing the total proposed budget to N266,6444,273,305.04.
The administration aimed to implement at least 70 percent of the proposed budget if approved.
He said “The total budgeted sum is ₦266,644,273,305.04. The Recurrent Expenditure is ₦136,262,990,009.41 while the Capital Expenditure is ₦130,381,283,295.63. We are again, aiming for at least 70% implementation of the budget.”
He added that “It was my honour to present the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly, today. This Budget of Continued Consolidation was prepared with input from stakeholders in all seven geopolitical zones of our state.”
World Bank Expects Nigeria’s Per Capita Income to Dip to 40 Years Low in 2020
The World Bank has raised concern about Nigeria’s rising debt service cost, saying it could incapacitate the nation from necessary infrastructure development and growth.
The multilateral financial institution said the nation’s per capita income could plunge to 40 years low in 2020.
According to Mr. Shubham Chaudhuri, Country Director for World Bank in Nigeria, the decline in global oil prices had impacted government finances, remittances from the diaspora and the balance of payments.
Chaudhuri, who spoke during the 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Federal Government, said while the nation’s debt is between 20 to 30 percent, rising debt service remains the bane of its numerous financial issues and growth.
“Nigeria’s problem is that the debt service takes a big part of the government revenue,” he said.
He said, “Crisis like this is often what it takes to bring a nation together to have that consensus within the political, business, government, military, civil society to say, ‘We have to do something that departs from business as usual.’
“And for Nigeria, this is a critical juncture. With the contraction in GDP that could happen this year, Nigeria’s per capita income could be around what it was in 1980 – four decades ago.”
Nigeria’s per capita income stood at $847.40 in 1980, according to data from the World Bank. It rose to $3,222.69 in 2014 before falling to $2,229.9 in 2019.
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