The depth of Nigeria LNG’s focus on promoting the Train 7 expansion of its LNG export plant on Bonny Island, which would lift output by over 8 million tonnes a year (t/y) from the 2017 level to 30m t/y by 2023, is underlined by managing director and chief executive officer Tony Attah’s tireless efforts to raise investment for it. But he says these efforts are paying off and is optimistic of the project’s viability despite increased competition.
Nigeria was the world’s fourth-biggest exporter of LNG behind Qatar, Australia and Malaysia between 2015 and 2017, according to data from IHS Markit, and Nigerian LNG exports reached a record 21.3m t/y last year. But it faces a potential decline in influence as the US, Russia and Mozambique ready major new export capacity ahead of an expected global LNG supply crunch in 2023.
The company wants to raise almost $7bn to cover the cost of the construction and a further $5bn for upstream investment to ensure gas feedstock. But despite the size of the challenge and macro risks, Attah believes that other key obstacles are falling away.
Attah however said; “We can’t control the market, and are mindful of other unexpected risks that will arise. This is why we are focused on always achieving competitiveness in this project.” He added; “In the lead-up to the FID, during the post-FID period and in the years running up to 2023, we will need to be strong as the market rapidly evolves with new players and new demand.”
Source: Petroleum Economist