edo.girl:
It's all down to viability. Truth is LNG is yesterday's news. The world has moved on. Nigeria's biggest LNG project (Brass LNG)has been stuck in phase 2 (called Train 2) when it was planned to have 4 trains. The multinational oil companies are also involved in that project.

The price of LNG collapsed on the world market a few years back, and though it has improved a bit, new gas discoveries have been made in many more countries (including East Africa)thus meaning there are more supply sources. Paradoxically, much of Nigeria's gas can't be sold locally due to low domestic prices.

With LNG no longer in hot demand (as it was when Olokola and the other projects were planned), and no viable domestic market, any surprise investors are pulling back. Investors are hard-nosed profiteers. They are no mugs.

To compound LNG's problem, there is the phenomenon that is shale gas, which is reshaping America's (and soon the world's) energy market. With the discovery of shale gas, LNG prices in America are so low that if you got a ship-load of Nigerian LNG for free, and ship it to the US, by the time it arrives there, the cost of shipping alone will ensure that the 'free' LNG will still be almost as expensive as the current cost of LNG in the American market.

As far as LNG is concerned, OLOKOLA IS DEAD. It's not politics. The project, and others in Nigeria simply are not adding up anymore. What to do is to keep it alive for other industries, and the proposed Dangote refinery is a good step. It can become a cluster for allied petrochemical, plastic, and other industries. It can still achieve serious success.

What we should be doing as a country is seriously looking at rebalancing the economy away from its over dependence on oil. But when you have a political class whose sole desire is to loot, there is no hope of any such rebalancing happening. They are simply not interested.

Ever wondered how much energy, resources, and valuable time this Presidency was spending on Amaechi and PDP's political machinations in Anambra? You get it! Their own personal financial considerations are far more important to them.

edo.girl:
My brother, like you, I am usually cautious about Nigerian newspaper, but you can find similar information in the Economist.

I think we both agree that we need to diversify. Of course oil & gas will continue to be important to the economy.

atlwireles:

As much as I agree with some of your points. The fact remains, that natural gas demand globally will rise. Shale gas or not. LNG Plants will play a major role in this market. Even the American shale gas will be exported somewhere in Asia. The cost of building new pipelines,shipping terminals and very strict environmental rules will not only equalize, whatever advantage they have, it will actually make our gas cheaper .The Indians, Chinese, Japanese and Koreans are in desperate need of Natural gas. China is spending hundred of billions to pipeline gas from Russia. The America market is gone, but Asia is just opening up. Nigeria is well position due to cost and availability of this product to remain a player for another 100ys. Unless we turn water in some kind of cost effective energy source.

davide470: Well, Shale Gas or not..the market for Gas is still active and progressing
N.B: some firms i know in the US still prefer naija gas than their *discovered* shale gas.
Asian market consumes gas like we consume garri over here. Look @ Japan, since they shut-down some of their nuclear reactors, gas has been one of their main stays, if not the major.

So, Olokola, Brass or not, NLNG is still functional and Train 7 is even about to come on stream!

Billyonaire: Obj blackmailed Ibori to secede land to Ondo so yorubaland can be called oil producing state and went ahead to build that LNG to pipe gas from ND.

That LNG will not work cos ondo and ogun has no gas. Obj's second name is injustice.

naptu2:

+100. Very good post.

Firstly, it has not been confirmed that they are pulling out.

Secondly, remember what Rotimi Amaechi said in his Hardtalk interview? He said that the oil majors are not pulling out, but are concerned that the PIB has not been passed. It's difficult for them to plan and invest, if they don't know the rules that would guide their operations.

plaindealer:



1. ND is not the only oil producing region in Nigeria, Ondo state where the project was sited is an oil producing state too.

2. Chevron's oil activities is in Ondo state hence their involvement in the project in Ondo state.


3. ND is not the beginning and end of oil in Nigeria, oil id flowing in other regions too and it's about to start flowing in Lagos too.


4. Ondo and Ogon state are building the OK FTZ/Energy hub and a deep sea port to move LNG and other energy products all over the world in the same area.

5. Dangote is spending $8 billion on his Refinery in the same Olokola FTZ

6. Covenant Ground Refinery is building another refinery in the same Olokola (OKFTZ) in Ondo State too.

The FG and the rest of the shortsighted clowns in Abuja can sabotage and play their usual bad bele game, but their failed LNG project is not the only game in town. It's still full steam ahead for Olokola (OKFTZ).

This is going to be the new Energy Capital of Sub Africa and next in line is the Badagry Energy city...



Thank and like me for this wonderful education...

kolexy:

As a major Oil producing state, Ondo state is one of Niger Delta states. Niger delta is different from South-south, which is based on the geograpghy of the country. Abia and Imo are the other non South-south states that are 'Niger Delta', based oil production.

plaindealer:


Actually, Ondo people are not yoruba, they are not even part of the SW, they are not just nd from ND, they are hausa too, they don't speak yoruba, they don't eat yoruba food, they were never part of the old western region, they are Ibo from abakaliki, Ondo people are from from rom from..oh, I forgot where they are from......oh, heard they are Jews too......

lmao.... You people no go kill pesin with your jokes I swear. First it was some Olodo professor from some low grade university saying Lagosians are Benin, now ondo people are from nd.


lol...

edo.girl:
It's all down to viability. Truth is LNG is yesterday's news. The world has moved on. Nigeria's biggest LNG project (Brass LNG)has been stuck in phase 2 (called Train 2) when it was planned to have 4 trains. The multinational oil companies are also involved in that project.

The price of LNG collapsed on the world market a few years back, and though it has improved a bit, new gas discoveries have been made in many more countries (including East Africa)thus meaning there are more supply sources. Paradoxically, much of Nigeria's gas can't be sold locally due to low domestic prices.

With LNG no longer in hot demand (as it was when Olokola and the other projects were planned), and no viable domestic market, any surprise investors are pulling back. Investors are hard-nosed profiteers. They are no mugs.

To compound LNG's problem, there is the phenomenon that is shale gas, which is reshaping America's (and soon the world's) energy market. With the discovery of shale gas, LNG prices in America are so low that if you got a ship-load of Nigerian LNG for free, and ship it to the US, by the time it arrives there, the cost of shipping alone will ensure that the 'free' LNG will still be almost as expensive as the current cost of LNG in the American market.

As far as LNG is concerned, OLOKOLA IS DEAD. It's not politics. The project, and others in Nigeria simply are not adding up anymore. What to do is to keep it alive for other industries, and the proposed Dangote refinery is a good step. It can become a cluster for allied petrochemical, plastic, and other industries. It can still achieve serious success.

What we should be doing as a country is seriously looking at rebalancing the economy away from its over dependence on oil. But when you have a political class whose sole desire is to loot, there is no hope of any such rebalancing happening. They are simply not interested.

Ever wondered how much energy, resources, and valuable time this Presidency was spending on Amaechi and PDP's political machinations in Anambra? You get it! Their own personal financial considerations are far more important to them.

edo.girl:
Nigeria is the second largest producer of liquefied petroleum gas in Africa, and the sixth largest producer in the world with over 3million metric tones annually. However, current per capita consumption of the gas in Nigeria is about 0.8kg/annum. This is the lowest in Sub-Saharan Africa; lower than those of Nigeria’s West Africa neighbours who do not produce the product. Annual LPG consumption is in Nigeria for 2010, was put at 120,000MT, whereas, in Lagos alone, there is a potential market for 1,000,000MT annually. Source: http://www.vanguardngr.com/2013/07/natural-gas-importance-and-uses-2/

There you go about our per capita gas consumption. You see the problems we face in this country. You are an insider in the industry, yet you do not appear to be aware of the situation. For all we know, you could be a policy maker in the industry. No wonder the country keeps going around in endless circles.

I don't think I said anywhere that there is no potential for increased pas consumption. My argument is that real demand has been low, given the amount the country produces and was billed to produce. That's why I said, the multinationals are not going to sink in more of their money, hence why Brass (Bonny?) has not moved beyond train 2, and why they are pulling out of Olokola.

Perhaps you have different reasons as to why these projects have stalled.

Burying one's head in the sand and saying that all is well and rosy isn't going to get us anywhere. When other countries can see problems several decades ahead, we insist 'all is well and good.' Should we continue to produce gas, absolutely. Should we increase production when economics demand it, yes. Should we be looking to diversify our economy away from near-total dependence on oil. A bigger yes.

edo.girl:
It's all down to viability. Truth is LNG is yesterday's news. The world has moved on. Nigeria's biggest LNG project (Brass LNG)has been stuck in phase 2 (called Train 2) when it was planned to have 4 trains. The multinational oil companies are also involved in that project.

The price of LNG collapsed on the world market a few years back, and though it has improved a bit, new gas discoveries have been made in many more countries (including East Africa)thus meaning there are more supply sources. Paradoxically, much of Nigeria's gas can't be sold locally due to low domestic prices.

With LNG no longer in hot demand (as it was when Olokola and the other projects were planned), and no viable domestic market, any surprise investors are pulling back. Investors are hard-nosed profiteers. They are no mugs.

To compound LNG's problem, there is the phenomenon that is shale gas, which is reshaping America's (and soon the world's) energy market. With the discovery of shale gas, LNG prices in America are so low that if you got a ship-load of Nigerian LNG for free, and ship it to the US, by the time it arrives there, the cost of shipping alone will ensure that the 'free' LNG will still be almost as expensive as the current cost of LNG in the American market.

As far as LNG is concerned, OLOKOLA IS DEAD. It's not politics. The project, and others in Nigeria simply are not adding up anymore. What to do is to keep it alive for other industries, and the proposed Dangote refinery is a good step. It can become a cluster for allied petrochemical, plastic, and other industries. It can still achieve serious success.

What we should be doing as a country is seriously looking at rebalancing the economy away from its over dependence on oil. But when you have a political class whose sole desire is to loot, there is no hope of any such rebalancing happening. They are simply not interested.

Ever wondered how much energy, resources, and valuable time this Presidency was spending on Amaechi and PDP's political machinations in Anambra? You get it! Their own personal financial considerations are far more important to them.

El fenómeno:

I am Yoruba from the oil producing region of Ondo State, just wanna ask if you understand the meaning of 'Delta' this time around not the Greek alphabet. Try get that, then put Niger before the Delta and check a Nigerian map. The fact remains, all states of the SS are part of the Niger Delta so the term has now become synonymous with them. Italy, France, Greece are European countries and also part of the Mediterranean belt, will you say Libya, Tunisia, Morocco are also not part of it just because they're Arabs?

sbeezy8: [size=14pt]Dangote to Amosun: Don't abandon Olokola, industrial park[/size]

THURSDAY, 29 MARCH 2012

BILLIONAIRE industrialist, Alhaji Aliko Dangote, has charged Governor Ibikunle Amosun of Ogun State to build on the successes of his predecessor.

He specifically urged Amosun to complete the Olokola Free Trade Zone and industrial park initiated by the immediate past administration of Otunba Gbenga Daniel to attract huge funds to the state.

Dangote, who spoke in Abeokuta on Tuesday at the just-concluded Ogun State Investors' Forum, also advised the governor to partner with the concessionaire of Lagos-Ibadan Expressway, Bi-Courtney Highway Services, to reconstruct the highway in the interest of Nigerians as well as business development.

The business mogul said the Gateway State has the potential to become Africa's industrial and investment hub, if right policies and programmes are mapped out by the state government.

Dangote said: "Ogun State has what it takes to become the giant of Africa. As you know, the state has a place where it shared boundary with Ondo State and that is the place we call Olokola.

"The Olokola Free Trade Zone is a place where we can build the biggest seaport in Africa. If Ogun is able to get the right, genuine investors to put up massive infrastructure, we’ll have more businesses than what we have put together in the whole ports in Nigeria because today, as we are talking, we don’t have any deep sea port in the Western part of Africa and by setting up one, it means that much of the businesses will come down here.

"Today, it take weeks for you to clear a 20-feet container in Lagos port; other ports are so shallow, they are not really commercially-viable and will not be able to take big ships to go and discharge your cargo.

"Secondly, you also have what we call proximity; Ogun State is just some few kilometres away from Lagos and also it is the entrance going to other parts of the country. This means that you can have the Lagos, Ogun, Nigeria and the rest part of African markets. So really, why do you want to leave Ogun State and go somewhere else?

"One of the things that Ogun State needs to do is: first, the governor should personally take interest in terms of finishing the gas pipeline which is just less than 150 kilometres which links part of the East to the West.

"I remember when we wanted to build the Kogi cement factory; we have to run a 92 kilometre of gas pipeline. So, for Ogun State, the calibre of participating investors here can assist in financing the project and the state can pay up in a maximum of two years.

"By linking the West with Eastern gas pipeline, Ogun State can set up an industrial park with uninterrupted gas supply, they can set up petrochemical industry, because today if there is an industrial park, what it would do is to help in terms of creating jobs here. The economy will be totally transformed because you would have created a lot of jobs; the people that are here and in the neighbouring states and countries will have disposable income and that will translate to economic prosperity.

"So, I believe it is now key upon you to do three things: first to be sure that Olokola becomes a reality, also to set up an industrial park which does not need much money and people are ready to pay; it does not really cost much. Once you generate that industrial park, everybody would move down to Ogun State."

Dangote noted that Ogun has the markets for the attendant businesses, adding that "by 2014, the state will be much bigger in terms of cement production than 90 per cent of African countries.

"As it is today, the total cement production capacity in Ogun State is bigger than that of South Africa put together.

Ogun state has capacity to produce 16 ½ million tonnes and South Africa has only 14 million tonnes," he said.

The industrialist also urged the governor to invest in security and infrastructure to attract more industries to the state.

agbameta:


All this wahala over what? Why are you troubling yourself based on nothing? There is oil in Ondo state and they are not talking about laying pipelines to transport nd gas to Ondo state so why are you getting agitated ?

Billyonaire: Obj blackmailed Ibori to secede land to Ondo so yorubaland can be called oil producing state and went ahead to build that LNG to pipe gas from ND.

That LNG will not work cos ondo and ogun has no gas. Obj's second name is injustice.

chima12: The olokola project is one obasanjo/southwest project whose principle is based on parasitism.obasanjo refused to site the facility in delta state which is actually the major source of the gas that is to feed the facility rather they intend to move the gas/raw materials from the source in delta state via pipelines to the facility sited in olokola,ondo state.

Delta state having seen through the plan of southwest to exploit the resources of delta state using olokola facility in ondo, have decided to build one of the largest industrial gas facility/city in warri southwest lga of delta state.

As far as LNG,LPG is concerned,olokola is a non-starter whose establishment is due to politics and desire by yorubas to exploit niger delta resources.olokola is another ajaokuta in the making which is one reason the major partners like chevron,shell have deserted it.

otokx: Olokola is really another Ajaokuta, the days of injustice are over. They want to pipe gas from we delta to far away Ogun state, not God but we forbid. Koko is there, Sapele and Brass are also there, Ibaka too is there.

Marotzke: Really, do you honestly believe what you said? Or is information available to you deficient.

AWKA_MADE_GUN:


That is the point these clowns fail to catch..

agbameta:


Unfortunately for you clowns, Olokonla is more than LNG, it's a FTZ and industrial park with billions of dollars investments already on the ground even before Dangote stepped in to add his $8 billion refinery project. $8 billion refinery itself is a city or community with it's own side industrial and manufacturing activities.

The LNG fiasco remains one of your FG's usual corrupt and incompetent move and with investments still flowing into Olokonla regardless, your LNG nonsense remains mute and irrelevant.

otokx: Let them keep talking; if you like build the largest refinery on planet earth; just make sure the pipelines are not coming from the niger delta oil fields.