Page 16 - DMEA Week 12 2023

DMEA NEWS IN BRIEF DMEA

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

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