With the discovery of shale gas in the United States, the Nigeria Liquefied Natural Gas Limited (NLNG) has shifted focus to Japan as one of its global biggest markets. According to Managing Director Nigeria Liquefied Natural Gas (NLNG) Tony Attah.
“When we started off in 1999 to 2008, 35 per cent of our sales were to United States, while 65 per cent was to Europe. But in the last 10 years, the United States has discovered shale gas and no longer needs LNG. “From 2010 we were able to penetrate Japan. We were the first country to respond to Japan when it had a nuclear accident to provide them LNG. “The trade has grown and Japan is one of our highest markets. Overall in Asia, we do about 48 per cent of our sales while 52 per cent to Europe. United States gets less than one per cent. We only send cargoes there once or twice in a year just to fulfill some obligations.”
However recent report shows sharp drop in the volume of gas exported to Japan. Nigeria sent only one cargo in October, down 49% year on year, at a price of $292.98/mt, or $5.634/MMBtu.This could be as a result of market forces of demand and supply in the international market. The maran gas amphipolis delivered a Nigeria cargo into Futtsu LNG terminal on October 9.
Japan’s Lliquefied Natural Gas (LNG) imports from countries slipped 2.3% year on year to 6.1 million mt in October with volume from Nigeria and Qatar down. The NLNG is the fourth largest LNG plant in the world, and accounts for seven percent of the global LNG.
Nigeria LNG Limited was incorporated as a limited liability company on May 17, 1989 to harness Nigeria’s vast natural gas resources and produce Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) for export. The company is owned by four shareholders, namely, the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation (49%); Shell (25.6%); Total Gaz Electricite Holdings France (15%) and Eni (10.4%).
Reported By: Fikayo Owoeye