Nigeria to account for 31% of Africa gas liquefaction capacity by 2018

The latest released liquefied natural gas report by International Gas Union Report (IGU) shows that Nigeria is to account for 31 percent of the Africa liquefaction capacity by 2018.

African liquefaction capacity stood at 66.8 million tonnes per annum (MTPA) in 2013 and it was projected to rise to 71.5 MTPA in 2018 with the introduction of new capacity in Algeria and Angola. Of the Africa liquefaction capacity for 2018, Nigeria is expected to account for 21.9 MTPA or 31 percent.

According to the report, Nigeria’s 21.9 MTPA is expected to come from the six trains which are currently operational, though the same liquefaction capacity was achieved in 2013 which represented 33 percent of Africa capacity in 2013.

However, if the Nigeria Liquefied Natural Gas (NLNG) train 7 project with 8.4 mtpa come on stream before the period under review which is expected to raise the liquefaction capacity of NLNG to 30mpta, Nigeria has the chance of increasing its share in Africa’s liquefaction capacity to 38 percent with Africa capacity also attain new total of 79.9 mtpa.

The Nigeria LNG Limited in its ‘ Facts and Figures on NLNG 2014, released recently shows that the plans for building Train 7 are currently progressing with some preliminary early site preparation work initiated. Further work awaits an FID by the shareholders.

The report revealed that the global nominal liquefaction capacity stood at 290.7 MTPA at the end of 2013, up from 282.3 in 2012 with the coming on stream of 4.5 MTPA Skikda Rebuild in Algeria and the 5.2 MTPA Angola LNG Train 1.

Though, Qatar remains the largest liquefaction capacity holder, with more than 27 percent of the global total in 2013, Australia is expected to gain the lead in 2017. Presently, Australia has 62 MTPA capacity under construction, representing 53 percent of all projects that have reached FID, it is projected to become the main source of near-term liquefaction capacity growth.

Aside from Australia, the report shows that North America has witnessed a surge in liquefaction project proposals in the past two years, driven by the expansion of shale gas production. The US now counts 265 MTPA of proposed pre-FID capacity; a further 134 MTPA has been proposed in Canada.

The report shows that some of these projects are expected to materialize; a significant number may not be built due to regulatory and global demand constraints.

While Russian liquefaction projects gained momentum in the wake of the LNG export liberalization in early 2014, new gas discoveries in East Africa have also spurred proposals, though considerably risks abound in this untested region.

Meanwhile Nigeria will export around 1.91 million barrels per day (bpd) of crude oil in November, its highest level since September 2013.

November’s figure is higher than the upwardly revised figure of 1.86 million bpd due to be exported in October.

Higher exports of the Bonny Light grade BFO-BON, which had been beset by oil theft, outweighed a dip in the level of Qua Iboe BFO-QUA and Forcados BFO-FOC exports.

The increase in exports adds more light, sweet crude oil to an already well-supplied market, with both Libyan and Iraqi exports on the rise.

Strong supply has helped push Brent crude, against which West African oil is benchmarked, down almost 14 percent this quarter, its biggest such drop since the second quarter of 2012.

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