Nigeria desperately wants a substantial export market to realize value for natural gas being produced in Nigeria. The country aims at earning US$10 Billion by the year 2011.
Olusegun Obasanjo, Nigeria President, believes that his country can cross year on year revenue of US$ 10 Billion (about N1.28 trillion) from LNG (Liquefied Natural Gas) by 2011, as per the news published on The Tide Online.
In general, Shell OKLNG Holdings B.V., NNPC Chevron OKLNG Holdings Limited, and British Gas OKLNG Limited are co-sponsoring the US$ 11 Billion project, widely regarded as the single biggest project in Africa.
According to President Obasanjo, "I am personally gratified to see that our aspiration for the gas sector in 1999 is being met with forecast revenues by 2011, topping $10 billion annually. For many years, gas utilisation in Nigeria was neglected, resulting in wasteful flaring, prompting the present administration to lay down a well-structured agenda for the sector”, in news published on All Africa.Com.
It is worthwhile remembering that the price of natural gas in Nigeria at the present juncture is quite low – between US$0.20/mcf and US$0.65/mcf. On the other hand, the gas’s domestic demand is primarily from the aluminum smelting, fertilizer, cement and steel industries, and power sector. A substantial export market is an absolute necessity to realize the value for natural gas that’s produced in Nigeria.
Nigeria, with its relatively large chunk of gas resources, is in fray to supply a substantial part of this growing world demand with its LNG. If initial signs are anything to go by, the LNG will likely be delivered to U.S. and Mexico for meeting the enhanced demand of natural gas in such countries, and particularly to regasification capacity of Total at the Altamira LNG terminals and Sabine Pass.
Another pivotal factor, which is in favor of Nigeria, is the nation is strategically as well as geographically well located in Atlantic Basin for supply LNG reliably and competitively to both European and United States markets. Nigeria LNG at the moment is supplying the gas on long-term basis to Europe in addition to the spot-sale to US and even in to Asia-Pacific. Also, it has acquired the reputation of being the reliable supplier of gas.
Related Market Research Reports:
Global LNG Market - The Road Ahead
Liquefied Natural Gas (LNG) in China
Future Outlook for Global LNG Market (2010)
