Page 8 - GLNG Week 14 2022
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GLNG AFRICA GLNG
Sylva urges NLNG shareholders to let
other producers supply gas to its plant
PROJECTS & NIGERIA’S Minister of State for Petroleum can afford to supply at subsidised rates because
COMPANIES Resources, Timipre Sylva, has asked sharehold- they are partners in the NLNG project, not the
ers in Nigeria LNG (NLNG) to let other natural third parties.”
gas producers access their pipeline networks so Sylva went on to say that it was in the inter-
that additional feedstock can be delivered to the ests of both Nigeria and Italy to resolve the dis-
consortium’s gas liquefaction plant on Bonny pute. Increasing NLNG’s capacity utilisation will
Island. directly benefit the European Union by allowing
Speaking during a meeting with Stefano De the consortium to boost shipments of LNG to
Leo, the new Italian ambassador to Abuja, on Europe, which is seeking new sources of fuel, he
April 4, Sylva noted that the NLNG plant was explained.
currently operating at only around 70% of its De Leo expressed similar sentiments, say-
installed capacity because it was not receiving ing: “At the moment, the EU wants to diversify
enough gas. its energy sources, especially gas, and Nigeria is
If the NLNG group’s shareholders were to very strategic to us. We have been long-stand-
open up their pipelines to other producers, he ing friends and partners – and one of the most
said, the facility would have enough feedstock to important [ones], for that matter. So we need to The problem
meet all of its obligations on the domestic and continue to dialogue on how things can be done
export markets. properly. In Africa, no country is more strategic stems partly from
“The issue we have with the existing NLNG than Nigeria because of its population, economy
trains is that of insufficient gas supply. The part- and political position. So we are happy to work disagreements
ners are running out of gas, and they are refusing with you.”
third [parties the opportunity] to supply gas to Eni, an Italian company that is also active in over the payment
the trains ... This is a very critical issue that I want Nigeria’s upstream sector, holds a 10.4% stake in structure for
to discuss with the respective partners to see NLNG. The remaining equity in the consortium
how we can resolve this problem so that we can is split between Nigerian National Petroleum Co. gas deliveries
increase the production capacity of the NLNG Ltd (NNPC Ltd), the operator, with 49%; Shell
[plant],” De Leo said, according to a report from (UK), with 25.6%; and TotalEnergies (France), to NLNG, Sylva
Blueprint. with 15%.
The problem stems partly from disagree- The partners have been operating a gas liq- noted.
ments over the payment structure for gas deliv- uefaction plant on Bonny Island since 1999. The
eries to NLNG, Sylva noted. facility now has six production trains capable of
“The partners are insisting that they can only turning out a total of 22.5 mn tpy. Its installed
allow third [parties to] supply gas to the plant capacity is set to rise to 30mn tpy as a result of
only if they agree to supply at subsidised rates,” the Train 7 project, which envisions the con-
he commented. “These people, of course, want struction of a seventh production train that can
to make money and they cannot supply at sub- turn out 4.2mn tpy, as well as the debottleneck-
sidised rates, and that’s why the NLNG trains ing of existing trains, which will add another
cannot produce at [full] capacity. The partners 3.4mn tpy of capacity.
P8 www. NEWSBASE .com Week 14 08•April•2022
