Nigeria LNG Terminal

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This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.
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Nigeria LNG Terminal is an operating LNG terminal in Rivers, Nigeria.

Location

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Project Details

  • Parent: Nigerian National Petroleum Corporation (NNPC - 49%), Shell (25.6%), Total S.A. (15%), Eni (10.4%)
  • Location: Bonny Island, Rivers, Nigeria
  • Coordinates: 4.41836, 7.16157 (exact)
  • Capacity: 22 mtpa, 3.16 bcfd
  • Additional Proposed Capacity: 8 mtpa
  • Status: Operating
  • Type: Export
  • Start Year: 1999

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Nigeria LNG Terminal is an LNG terminal in Rivers, Nigeria in the Gulf of Guinea .[1]

Nigeria LNG Limited operates six liquefaction units (LNG trains) producing 22 million mtpa.[2] This amounts to roughly 10% of the world's LNG consumption.[3] Trains 1, 2 and 3 have production capacities of 3.2 mmtpa, whilst trains 4, 5 and 6 have capacities of 4.1 mmtpa each.[4]

According to the International Gas Union’s World LNG 2017 report, Nigeria was the fourth largest LNG exporter by share after Qatar, Australia, and Malaysia between 2015 and 2016.[5]

Nigeria LNG produced less in 2016 due to extended maintenance and unrest in the Niger Delta region.[5] In 2016 Nigeria LNG had announced a proposed 8.4 MMtpa liquefaction and purification two-train expansion at NLNG. Nigeria LNG is now considering smaller 4.3 MMtpa trains instead.[5]

Expansion Project Details

  • Parent: Nigerian National Petroleum Corporation (49%), Shell (25.6%), Total S.A. (15%), Eni (10.4%)
  • Location: Bonny Island, Rivers, Nigeria
  • Coordinates: 4.41836, 7.16157 (exact)
  • Capacity: 8 mtpa
  • Status: Proposed
  • Type: Export
  • Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Expansion Background

There is a planned $12 billion expansion project to add a seventh LNG processing unit to increase its total production capacity from 22 million tonnes per annum (Mtpa) to 30Mtpa.[6]

Outages

Bloomberg estimated in July 2017 that 30 percent of the oil sent by pipelines through the Niger River delta is stolen. Natural gas comes out of the well when drilling for oil and later because feed for LNG exports.[7]

At Agbada, in Niger River delta, the wells had been shut for three weeks summer 2017 following a likely deliberate pipeline leak caused by thieves.[7]

The leak on the pipeline taking Agbada’s crude to the Nigeria LNG Bonny export terminal in the Gulf of Guinea forced Shell to miss oil deliveries. It also hurt production of gas, which flows out of the wells with the oil.[7]

Supplies to Nigeria LNG decreased 10 percent during the Agbada outage.[7]

Nigeria LNG has considered at gas transport options other than vulnerable pipelines, but so far has not discovered an alternative.[7]

Pakistan Import

Pakistan began talks in in 2017 to import crude oil LNG from Nigeria LNG.[8] Both Nigeria's state owned company (Nigerian National Petroleum Corporation) and Pakistan’s state owned companies (Pakistan Petroleum Limited and Oil and Gas Development Company) will be involved. Pakistan imports 4.5 million tons of LNG a year. The Express Tribune estimated the deal could increase that number to 9 million tons.

Currently Nigeria lacks adequate refinery capabilities. The 2017 talks with Pakistan include discussions to build refineries.[8]

Articles and resources

References

  1. Nigeria LNG, Wikipedia, accessed 21 September 2017
  2. Orji, Udenna. Nigeria Set to Become World's Second-largest LNG Supplier - Official, Downstream Today, 28 September 2009.
  3. Pitt, Anthea. NLNG declares force majeure, Upstream Online, NHST Media Group (subscription required), 28 November 2008.
  4. Coping with security challenges of natural gas markets, IEA Gas Security Workshop at Paris: International Energy Agency, June 11 2011.
  5. 5.0 5.1 5.2 "2017 World LNG Report" International Gas Union, Accessed June 20, 2017.
  6. "Nigeria LNG Plant Expansion, Bonny Island" O&G Links, April 2019.
  7. 7.0 7.1 7.2 7.3 7.4 Paul Wallace, "Pakistan gives go-ahead for oil, gas import from Nigeria," Bloomberg, July 20, 2017.
  8. 8.0 8.1 Zafar Bhutta, "Pakistan gives go-ahead for oil, gas import from Nigeria," The Express Tribune, September 1, 2017.

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