NNPC Unit Wary about Expanding Nigeria LNG

Napims, the integral part of state-owned Nigerian National Petroleum Corporation (NNPC) that manages government investments, has called for the country’s own energy needs to be prioritised first, ahead of any new LNG export trains. Its view may not be dissimilar from foreign investors

Napims' remarks to a Nigerian newspaper come barely a week after the Nigeria LNG venture told NGW that it is still wants to add two new liquefaction trains at its existing 22mn mt/yr six-train complex.

Vanguard newspaper May 9 quoted a Napims source saying that it believes that Nigeria would be better off satisfying its needs first, before developing Trains 7 and 8. "After taking a closer look at the planned gas projects, it is the opinion of Napims that the nation's energy needs or security should be secured first before meeting the needs and aspirations of foreign buyers through the extra trains of the Nigeria LNG,” the source told Vanguard.

The Nigeria LNG complex at Bonny Island, by night (Photo credit: NLNG)

Nigeria LNG told NGW a week ago that it was time to unleash the country's gas potential through catalyst projects such as NLNG Trains 7 and 8 to spur industrial and economic transformation. But Napims seems to disagree. Nor did Shell or Total say in recent 1Q results they were eager to expand NLNG.

The addition of trains 7 and 8, if ever agreed, would take the complex's LNG export capacity to 30mn mt/yr. But there is a worldwide glut of LNG. Meanwhile gas-fired power plants inside Nigeria remain often unable to source enough feed gas to satisfy the country's demand for electricity. 

NLNG is owned by four shareholders: the state’s NNPC 49%, Shell 25.6%, Total 15% and Eni 10.4%,

Napims’ mandate is to manage government (NNPC) stakes in joint ventures, production sharing contracts, and other upstream contracts, and to focus on using as much local content in projects as possible. Napims stands for National Petroleum Investment Management Services. 

Omono Okonkwo