Gas Supply Constraints May Worsen in Nigeria, Europe as NLNG Embarks on Plant Maintenance by February 2024


* Shutdown may impact FG’s planned $7bn dividend securitisation

The Nigeria Liquefied Natural Gas Limited (NLNG) is planning a total shutdown of its six-train, 22 million tonnes per annum (MTPA)-capacity plant in Finima, Bonny Island, Rivers State over a proposed maintenance operation scheduled to commence by February or March 2024, investigation has revealed.

This routine exercise, it was learnt, may worsen the current shortages of Liquefied Petroleum Gas (LPG), better known as cooking gas, being suffered by Nigeria, as well the current inadequate supply of LNG to the European markets caused by the Russia-Ukraine War.

It will also potentially affect the federal government’s efforts to boost foreign currency liquidity in the economy and strengthen foreign exchange (FX) through the securitization of about $7 billion of Nigeria’s dividends from the NLNG.

THISDAY gathered from multiple sources that the gas liquefaction company is currently on mini shutdown as the engineering, procurement, and construction (EPC) contractor is carrying out mini maintenance on the plant.

The NLNG which is adjudged as the only successful Nigerian company with an element of government ownership, has been facing the challenge of under-capacity production due to feed gas supply shortages resulting from the rampant oil theft and pipeline vandalism in the Niger Delta.

This has not only impacted its gas delivery to the domestic and international markets but also its revenue generation, as the company had in July last year reported a Year-to-Date $7 billion loss due to under-capacity production.

In addition, the planned shutdown of operation for the maintenance may further delay the company’s plan to begin domestic LNG supply to the Nigerian market with an initial volume of 1.1 million tonnes per annum with effect from July 2022.

NLNG has been operating at roughly 50 per cent capacity for many months running and had lamented that the trend had dampened the hope of gas supply availability for its Train- 7 currently under construction, a project that has reached a 52 per cent completion level.

The liquefaction firm had also hinted that the gas supply shortages might hinder its planned expansion to Train-8 and beyond.
According to one of the sources, who spoke to THISDAY on condition of anonymity, NLNG’s plant is on “mini-shutdown” to enable us to carry out “Catalyst change-out”.

“But it’s not a major shutdown, it’s a mini shutdown because the major shutdown will be by either February or March next year. By then, they will stop operation totally until the maintenance is completed,” he added.

NLNG is a supplier of LPG to the Nigerian market and has committed 100 per cent of its LPG production, representing 40 per cent of the total cooking gas consumed by Nigerians annually, leaving the larger volume for import by the oil marketing companies.

The company disclosed recently that it had delivered about 380,000 metric tonnes of LPG so far this year, out of the 1.3 million tonnes per annum national consumption figure.

However, marketers, especially LPG plant owners have been complaining of supply deficit for the past several years, resulting in the hike in the retail prices.

Similarly, Nigeria, through the NLNG is one of Europe’s top LNG suppliers, and the country, as confirmed by the European Union (EU) exported 9.4 billion cubic meters (bcm) of LNG to Europe in 2022.

During a recent visit to the NLNG in Bonny, an EU delegation had indicated the imperative of reinforcing its diplomatic relationship with its reliable LNG partners like Nigeria in the short term to enable it to bridge the gas supply gap in the continent that resulted from the Russia-Ukraine War.

The EU’s Commissioner for Energy in Nigeria, Ms. Kadri Simson, who led the delegation, had revealed that Nigeria exported 9.4bcm of LNG to Europe in 2022.

Simpson, whose delegation took a tour of NLNG’s Central Control Room (CCR), the plant complex, and the Train-7 construction site, had also stated that there was potential to improve Nigeria’s gas supply to Europe between then and 2027.

However, NLNG declined to comment on the said shutdown of operation next year as its Media and Communications department did not respond to phone calls as of the time of filing in this report.

https://www.thisdaylive.com/index.php/2023/11/12/gas-supply-constraints-may-worsen-in-nigeria-europe-as-nlng-embarks-on-plant-maintenance-by-february-2024?amp=1

Why not make the product excessively available and cheap before embarking on routine maintenance?? This Tinubu regime will favour me and my family 😂. FTC

If u can afford another gas cylinder...buy it and stock up...buy fuel in kegs....this may be the worst December ever.


I got some cheap samsung phones and game console for sale...check my profile

Ok

God help the masses in this country oh!

since 2 months now, na bush I dey enter to gather firewood for cooking

Hehehe.

Na to go buy extra cylinder .


Every small thing,na the poor go suffer am for Nigeria. Why not put in measures to cushion the effect of such maintenance.

We are not just proactive in Nigeria.

So, no provisions to make the damn product excess and store it in the reserve before embarking on such maintenance?

Anyway, they want the price to go for #2,000 per/L and used this as excuse.

May don see shege.

Please take this thing down. This is totally fake news

God we dey yur hand o,charcoal to the rescue

We survived Buhari shege, we will survive Tinubu shege pro max

More suffering? Good

More APC Thieftinubu certificate forger Shege banza hunger awaits Nigerians
Thieftinubu wan finish Nigerians

pstemma1990:
since 2 months now, na bush I dey enter to gather firewood for cooking

me I try buy hotplate for port Harcourt here since I started serving in this city in January.... God so good electricity is very good here and na light I dey take cook o. them go bring around 10-11 am today nai I wan take cook my beans and rice ..me dey use sense follow this our government , e remain small for don run commot PH say I no fit serve here 😂 😂 😂

After maintenance, they will the price again. Mark my word

Crisis news every day. Planned maintenance usually comes with planned build up of reserves in countries where people think.

I won't be surprised that those that buy the stuff abroad will not be affected but for us down here it is one tsunami after another.

Big fat lie…u think to shut down a train is like turning off car engine 😂, Omo see news. U didn’t ask ur self, why shutdown six trains at a time when u can shutdown one at a time. And shareholders will be happy to be losing money 😂

piuspp:
Big fat lie…u think to shut down a train is like turning off car engine 😂, Omo see news. U didn’t ask ur self, why shutdown six trains at a time when u can shutdown one at a time. And shareholders will be happy to be losing money 😂

This news is for the gullible zombies..
who swallow everything thrown at them by the evil propagandist administration..

May this constraint favour them and their families

Fake news

BigBlackPreek:
God help the masses in this country oh!

Since Tinubu becomes three president. Nothing has been working. Man is really dumb

Funny... And the same excuses circle.. as massive as Nigeria is, they keep telling stupid lies.. imagine your grandpa telling you "the reason he's cripple is because he shot himself in the leg"!!!.. we have very bad leaders

FG always use crude oil price as benchmark for budget planning, the question is what about money from Gas.

Price of Gas went up since the Russia Ukraine war started but FG never disclose how much they made from exporting Gas.

Billions are looted daily but nobody is asking questions including the National Assembly

ProminentProm:
Since Tinubu becomes three president. Nothing has been working. Man is really dumb

it's looking like he's even confused or something

Tinubulation pro max
I notice say lizard no dey our compound again dem too Don reach Canada?shou

BigBlackPreek:
me I try buy hotplate for port Harcourt here since I started serving in this city in January.... God so good electricity is very good here and na light I dey take cook o. them go bring around 10-11 am today nai I wan take cook my beans and rice ..me dey use sense follow this our government , e remain small for don run commot PH say I no fit serve here 😂 😂 😂

my brother e no funny, even a bag of charcoal is now 4,500 naira.. If I use my money by charcoal or gas, which one I go come take buy food...

I've already asked a friend to look for a small farm land for me, next year I'll be going into farming.

Hmmm dis country na wa

Nawa