By Ubon Akpan
Strong indications have emerged that liquefied natural holds great prospects for Nigeria as gas produced by the Nigeria Liquefied Natural Gas(NLNG) is set to attract higher demands at higher prices.
This is expected to generate more revenue for Nigeria and its joint venture partners and thus support efforts to revive and reposition the Nigerian economy.
To plug in and take advantage of this, NLNG is presently seeking $7 billion from the global financial markets to ensure it sustains its operations and expansion projects which will increase its production capacity from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.
Specifically, DNV GL, a globally renowned oil & gas research organisation in a recent report said there are strong indications that the output of NLNG’s train-7 will attract higher demand globally
In its latest report, DNV GL stated: “Nearly half of senior oil and gas professionals are actively preparing for the transition to a lower-carbon energy mix. The clear majority agree that gas will play an increasingly important role over the next decade; the stage is set for it to become the world’s largest energy source in the mid-2030s.
“The energy transition is the primary driver for investment in natural gas and liquefied natural gas (LNG) projects in 2018. As the oil and gas sector prepares for gas to overtake oil as the world’s primary energy source in the mid-2030s, nearly two-thirds (64%) of the industry’s senior professionals expect to increase or sustain spending on gas projects in 2018.”
The report said: “Nearly three-quarters (72%) believe that, as traditional coal energy generation is significantly reduced over the coming decades, the long-term attractiveness of gas will flourish.
“The organisation predicts that global oil demand will plateau over the coming 15 years, peaking in the early 2020s, adding that global gas demand will grow for another two decades, peaking only in the mid-2030s.
It stated: “By then, gas demand will be around 15% greater than in 2017, and gas will have overtaken oil to become the world’s largest energy source. Of the 813 senior industry professionals surveyed for our 2018 Oil and Gas Industry Outlook, nearly half (44%) report that their organization is actively preparing for a shift to lower-carbon energy mix this year.
NLNG, at a ceremony in London to commemorate the repayment of a US$5.45 billion Shareholder loan for its existing trains, the Managing Director and Chief Executive Officer of NLNG, Tony Attah, revealed that the US$ 7billon being sought will cover the company’s expansion program (construction of Train 7) and investment in the upstream gas sector in Nigeria that will ensure the sustainability of feed gas supply to its existing trains (Trains 1 to 6) and the new Train 7.”