NLNG needs $12b to fund two new processing units to drive expansion—US Report
New York-based Teneo Intelligence has released a new report on the activities of Nigerian Liquified Natural Gas (NLNG), saying it will require investment of about $12 billion to fund the construction of two new processing units, known as trains.
Before now, the pioneer gas group has a terminal with only six smaller trains in which gas is compressed and cooled to 258 degrees below Fahrenheit (minus 161 Celsius), before being piped as LNG onto ships at nearby jetties.
Located on Bonny Island, Rivers State, NLNG averred that it will decide later this year whether to invest more than $10 billion to boost capacity by 40 per cent. That would allow the Bonny Island terminal – an hour’s ferry ride from the oil hub of Port Harcourt – to export as much as 66 million cubic meters (30 million tons) a year to markets in Europe and Asia.
Nigeria is the largest LNG producer in the region and wants to get bigger. NLNG’s shareholders are Royal Dutch Shell Plc, Total SA, Eni SpA and the Federal Government through state-run oil firm, the Nigerian National Petroleum Corporation (NNPC).
