Page 15 - GLNG Week 46

GLNG AFRICA GLNG

NLNG set to increase domestic

LPG supplies by 28.6% in 2021

PERFORMANCE THE Nigeria LNG (NLNG) consortium is gear- from next year. That is a very positive contribu-
ing up to increase the volume of LPG reserved tion from NLNG.”
for domestic consumption by more than a quar- He also stated that the consortium was tak-
ter next year. ing this step in line with the federal government’s
Tony Attah, NLNG’s managing director, efforts to promote the use of LPG on the domes-
said last week that the group hoped to bring the tic market. Abuja sees LPG as a safer and cleaner
amount of LPG allocated to the domestic market cooking fuel, he commented.
up to 450,000 tonnes in 2021. This year, he noted, Expanding LPG consumption will also ben-
NLNG is slated to deliver about 350,000 tonnes efit the Nigerian economy by creating new jobs
per year (tpy) of LPG to Nigerian consumers, and responding to the challenges posed by the
equivalent to 35% of total domestic supplies. As a coronavirus (COVID-19) pandemic, the NLNG
result, the higher number would represent a rise chief claimed. Additionally, it will put the coun-
of nearly 28.6% on present levels. try in a position to play a key role in the global
Attah, who was speaking at a webinar organ- transition to cleaner fuels, he said.
ised by the Oil and Gas Group of the Nigeri- Attah went on to say that the rise in LPG use
an-British Chamber of Commerce (NBCC), would help Nigeria make the best use of its vast
pointed out that this increase was in line with natural and associated gas resources. He noted
long-term trends. “In 2007, the total consump- that Nigeria’s federal government has already
tion of LPG in Nigeria was about 50,000 tonnes,” dubbed 2020 the “Year of Gas” but urged offi-
he said. “Today, it is about 1mn million [tpy] cials in Abuja to do more, saying that intensive
and NLNG’s contribution is 350,000 [tpy]. We gasification programmes had the potential to
have approached our board to get a mandate to transform the Nigerian economy within the
increase NLNG’s contribution to 450,000 tonnes next 10 years.™

AMERICAS

Rystad: Argentina, Brazil to face supply gap

PERFORMANCE LNG imports are likely to fill the supply gap that widening over the next five years. By 2025, com-
is building in Argentina and Brazil over the next bined supply will rise to 72 bcm, and the coun-
five years, as pipeline shipments of Bolivian nat- tries will need to import an additional 18 bcm to
ural gas to the two countries decline, according meet demand. LNG is the most source of new
to the Norwegian energy consultancy Rystad imports, as it is currently cheaper than other
Energy. sources – including domestic gas production.
The two countries’ combined annual gas “Even though Argentina and Brazil have
demand is set to grow to 90bn cubic metres in extensive gas resources, a lack of pipeline inter-
2025, up from an estimated 76.5 bcm in 2020, connections and low investments pose hurdles
Rystad said in a report. However, Bolivia is in meeting rising domestic demand,” said Rahul
expected to supply only 3 bcm per year of the Choudhary, upstream analyst at Rystad Energy.
total, down from the current level of about 9 bcm “This, coupled with lower gas exports from their
per year, owing to declining gas production and traditional trading partner Bolivia, has trig-
increasing domestic demand, it said. gered the need for a significant increase in LNG
The two nations will also need to make up for imports in the near future.”
a supply shortfall, as their domestic production Brazil is currently capable of taking delivery
will be insufficient, it added. of the equivalent of 15 bcm per year of gas, as it
Rystad estimates that Argentinian gas has three LNG regasification units in operation.
demand will reach 52.5 bcm in 2020, while Bra- It expects to double import capacity through
zil’s will total 24 bcm. At the same time, Brazil’s three new projects that are in the latter stages of
domestic gas supplies are likely to be 20.1 bcm development.
this year, and Argentina’s will reach 42.2 bcm. Meanwhile, Argentina has only one LNG
This means that the two countries can supply import facility, the Escobar terminal near Bue-
62.3 bcm combined, or 14.2 bcm below pro- nos Aires, which can handle the equivalent of
jected demand levels for 2020. 6 bcm per year. It is intending to boost its LNG
The consultancy anticipates that gap import capacity.™

Week 46 20•November•2020 www. NEWSBASE .com P15