Page 6 - GLNG Week 12 2023

GLNG AFRICA GLNG

Nigeria’s LNG output drops amid heavy

flooding and pipeline sabotage

NIGERIA NIGERIA’S LNG output has floundered in 2023, predicting 1.22mn tonnes will be delivered
with a string of issues leaving the country’s six- globally. Nevertheless, many industry experts
Falling output at the train LNG facility on Bonny Island in the Niger believe the country is missing out on an impor-
facility dates back to Delta producing far below capacity since last tant opportunity as demand in Europe soars for
October 2022, when year, according to a report from Natural Gas LNG as the continent seeks to replace Russian
the plant declared force Intelligence. The facility, which boasts a capac- gas with the super-chilled fuel.
majeure as a result ity of 22mn tonnes per year (tpy), has recorded With the International Energy Agency (IEA)
of flooding. Exports a significant output drop on the back of intense predicting a tight market to last until 2026, when
have been protractedly flooding, pipeline sabotage and upstream gas a plethora of new projects will come online, a
declining since then supply issues. golden opportunity exists for NLNG to increase
according to Kpler Falling output at the facility dates back to profits in the short term.
analyst Ana Subasic. October 2022, when the plant declared force Africa’s largest plant has seen dwindling
majeure as a result of flooding. Exports have output since 2019, when exports from NLNG
been protractedly declining since then according reached 21.33mn tonnes. In 2022, exports fell to
to Kpler analyst Ana Subasic. just 14.61mn tonnes. It represents an enormous
In February, Nigeria LNG (NLNG) reported drop for the West African country, which at one
exports of 1.07mn tonnes, which represents 63% time controlled 10% of the global LNG export
of its total monthly capacity. While still far from market. In 2021, exports of the super-chilled fuel
operating at full capacity, the figure is mildly from Nigeria represented just 6% of the global
encouraging after four consecutive months of market share.
falling output. In January, the facility exported Nigeria’s drop in LNG output has been repli-
just 1mn tonnes, operating at a 53% utilisation cated by other LNG exporters on the continent
rate. with Algeria, Angola, Cameroon, Egypt and
Kpler forecasts that LNG output at the facil- Equatorial Guinea also witnessing a drop in uti-
ity will continue its upward trajectory in March, lisation rates of their export terminals. ™

P6 www. NEWSBASE .com Week 12 24•March•2023