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Nigeria planning to resume work on Ogidigben gas complex
NIGERIA
NIGERIA’S federal government has announced the revival of a major natural gas initiative that has been on hold for the last five years.
Timipre Sylva, the Minister of State for Petro- leum Resources, said on January 6 that the coun- try was ready to move forward on the Ogidigben project, which will require investments of $16bn. The scheme envisions the construction of a gas complex at a 27-square km site in the Warri South-West council of Delta State. The complex would include a central processing facility, a petrochemical plant, a fertiliser plant and a 350- MW gas-fired thermal power plant (TPP).
According to Sylva, although work on the project has fallen far behind schedule because of unrest in the Niger River Delta, the government is still committed to building the complex. “The Ogidigben Gas Project isn’t abandoned at all, I can tell you that,” he remarked. “Unfortunately, before now, [the] Ogidigben project was affected by security issues. When they tried the project, thereweresomesecurityissuesarounditandthe investors got worried.”
Despite all of the delays, Nigeria is still keen to proceed, he said. “[We] have also started discuss- ing the Ogidigben project again. If you listened to me while I was in Riyadh last year, the Ogi- digben project was [on] the front burners, and it is a project that we really hope to achieve. And
I believe that between us and the communities, [with] co-operation and peace from the area, the project can be achieved.”
The minister was speaking just a few weeks after Ogiame Ikenwoli, the king of Warri, asked Nigeria’s federal government to resume work on the Ogidigben initiative. He explained the request by saying that the complex could have a tremendous positive impact on Delta State’s economy.
Sylva also talked up the potential for eco- nomic gain, saying: “Nigeria needs a project like that because the country needs to drive activi- ties. There’s no magic about creating jobs in the oil industry. The only way to create jobs in the industry is to create activities in the industry. So if an Ogidigben project starts, a project worth $16bn in the Niger Delta, you can only imagine how many jobs will be created.”
He also stressed that the federal government would require support from local authorities withrespecttosecurityissues.“Asagovernment, we are keen on that project and we are discuss- ing it, but what we are also asking for from the communities and the entire Niger Delta region is peace in the whole of the area so that we can focus on the development of projects and create jobs in the region,” he commented.™
Nigeria LNG makes FID on Train 7 expansion oject
NIGERIA
THE Nigeria LNG (NLNG) consortium revealed in late December that it had made a final investment decision (FID) on the construc- tion of a seventh production train at its natural gas liquefaction plant on Bonny Island.
The group, which includes Nigerian National Petroleum Corp. (NNPC) and three interna- tional majors, said in a statement that it had signed an agreement on the expansion project on December 27. Italy’s Eni, one of NLNG’s shareholders, issued a press release confirming the FID on the same day.
The expansion deal is more than a year behind schedule. The consortium has delayed the FID several times, and it failed to meet its previous deadline, which fell in the fourth quar- ter of 2018.
In their statements, NLNG and Eni said the construction of the new production train would push the consortium’s output capacity above 30mn tonnes per year, up by 35% on the current level of 22.5mn tpy. Train 7 itself will be able to turn out 4.2mn tpy, Eni noted, and the debottle- necking of existing trains will add another 3.4mn tpy.
The consortium has already secured feed- stock for the new production train. Earlier in December, it signed 20-year gas supply agree- ments with Eni, Royal Dutch Shell (UK/Nether- lands) and Oando (Nigeria).
NLNG is not the only party set to gain from the FID. Reuters pointed out on December 27 that the project would help Nigeria reverse a decline in LNG output. The West African state
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w w w. N E W S B A S E . c o m Week 01 09•January•2020