Nigeria Liquefied Natural Gas (NLNG) has announced plans to invest more than $10 billion into the gas company to boost its capacity by 40%. This according to the company will allow it export 66 million cubic metres a year to markets in Europe and Asia.
According to Bloomberg, NLNG’s major shareholders Royal Dutch Shell, Total SA and the Nigerian National Petroleum Corporation (NNPC) are, however, skeptical about the profitability of the new expansion drive.
The report noted that the high level of insecurity in the oil-rich Niger-Delta, higher taxes, and unstable gas prices are some of the major concerns delaying the implementation of the new expansion project.
Nigeria, last year, shipped an estimated 46 million cubic metres of Liquefied Natural Gas (LNG), making it the fourth largest exporter of LNG in the world.
The new expansion will see the construction of two new processing trains to add to an existing six trains.
Speaking at the World LNG Summit held in Portugal recently, Tony Attah, Managing Director and Chief Executive Officer of Nigeria LNG Limited, noted that the company is making steady progress towards achieving Final Investment Decision (FID) on its Train 7 Plus (7+) projects.
He further noted that the gas company has grown from an initial investment of about $6 billion, into a $15.6 billion worth investment with an asset base of about $11 billion.
Nigeria LNG Limited was incorporated as a limited liability company on May 17, 1989, to harness Nigeria’s vast natural gas resources and produce LNG and Natural Gas Liquids (NGLs) for export.
It is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation (NNPC) – 49%, Shell Gas B.V. – 25.6%, Total Gaz Electricite Holdings France – 15%, and Eni International – 10.4%.