Nigeria LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Nigeria LNG Terminal is an operating LNG terminal in Rivers, Nigeria. Additional trains and a debottlenecking project are also proposed.

Location

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Project Details

Trains 1 & 2

  • Owner: Nigeria LNG[1]
  • Operator: Nigeria LNG[2]
  • Parent: Nigerian National Petroleum Corporation (49%); Shell (25.6%); TotalEnergies (15%); Eni SpA (10.4%)[3][2]
  • Location: Bonny Island, Rivers, Nigeria[4]
  • Coordinates: 4.41836, 7.16157 (exact)
  • Type: Export[4]
  • Capacity: 6.6 mtpa (3.3 mtpa per train)[4]
  • Status: Operating[4]
  • Start Year:

Train 3

  • Owner: Nigeria LNG[1]
  • Operator: Nigeria LNG[2]
  • Parent: Nigerian National Petroleum Corporation (49%); Shell (25.6%); TotalEnergies (15%); Eni SpA (10.4%)
  • Location: Bonny Island, Rivers, Nigeria[4]
  • Coordinates: 4.41836, 7.16157 (exact)
  • Type: Export[4]
  • Capacity: 3.3 mtpa[4][2]
  • Status: Operating[4]
  • Start Year: 2002[4]

Train 4

  • Owner: Nigeria LNG[1]
  • Operator: Nigeria LNG[2]
  • Parent: Nigerian National Petroleum Corporation (49%); Shell (25.6%); TotalEnergies (15%); Eni SpA (10.4%)[2]
  • Location: Bonny Island, Rivers, Nigeria[4]
  • Coordinates: 4.41836, 7.16157 (exact)
  • Type: Export[4]
  • Capacity: 4.10 mtpa[4][2]
  • Status: Operating[4]
  • Start Year: 2005[4]

Train 5

  • Owner: Nigeria LNG[1]
  • Parent: Nigerian National Petroleum Corporation (NNPC - 49%), Shell (25.6%), TotalEnergies (15%), Eni SpA (10.4%)[3]
  • Location: Bonny Island, Rivers, Nigeria[4]
  • Coordinates: 4.41836, 7.16157 (exact)
  • Type: Export[4]
  • Capacity: 4.10 mtpa[4][2]
  • Status: Operating[4]
  • Start Year: 2006[4]

Train 6

  • Owner: Nigeria LNG[1]
  • Parent: Nigerian National Petroleum Corporation (NNPC - 49%), Shell (25.6%), TotalEnergies (15%), Eni SpA (10.4%)[3]
  • Location: Bonny Island, Rivers, Nigeria[4]
  • Coordinates: 4.41836, 7.16157 (exact)
  • Type: Export[4]
  • Capacity: 4.10 mtpa[4][2]
  • Status: Operating[4]
  • Start Year: 2008[2]

Trains 1–6 Debottlenecking Project

  • Owner: Nigeria LNG[1]
  • Parent: Nigerian National Petroleum Corporation (NNPC - 49%), Shell (25.6%), TotalEnergies (15%), Eni SpA (10.4%)[3]
  • Location: Bonny Island, Rivers, Nigeria[4]
  • Coordinates: 4.41836, 7.16157 (exact)
  • Type: Export[4]
  • Capacity: 3.4 mtpa[5]
  • Status: Proposed
  • Start Year: 2024–2026 (due to delays in construction startup)[6]
  • FID Status: FID (2019)[8]
  • Cost: US$6.5 billion[9] (includes Train 7 below)
  • Financing: US$3 billion of export credit agency-backed debt financing

Train 7

  • Owner: Nigeria LNG[1]
  • Parent: Nigerian National Petroleum Corporation (NNPC - 49%), Shell (25.6%), TotalEnergies (15%), Eni SpA (10.4%)[3]
  • Location: Bonny Island, Rivers, Nigeria[4]
  • Coordinates: 4.41836, 7.16157 (exact)
  • Type: Export[4]
  • Capacity: 8 mtpa[10]
    • Originally 4.2 mtpa[5]
  • Status: Proposed[6]
    • Construction has also been reported as startingin 2021[8]
  • Start Year: 2026 (due to delays in construction startup)[6]
  • FID Status: FID (2019)[8]
  • Cost: US$6.5 billion[9] (includes debottlenecking above)
  • Financing: US$3 billion of export credit agency-backed debt financing

Train 8–12

  • Owner: Nigeria LNG[1]
  • Parent: Nigerian National Petroleum Corporation (NNPC - 49%), Shell (25.6%), TotalEnergies (15%), Eni SpA (10.4%)[3]
  • Location: Bonny Island, Rivers, Nigeria[4]
  • Coordinates: 4.41836, 7.16157 (exact)
  • Type: Export[3]
  • Capacity:
  • Status: Shelved[11]
  • Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Nigeria LNG Terminal is an LNG terminal in Rivers, Nigeria in the Gulf of Guinea .[12]

Nigeria LNG Limited operates six liquefaction units (LNG trains) producing 22 million mtpa.[13] Trains 1, 2 and 3 have production capacities of 3.2 mmtpa, whilst trains 4, 5 and 6 have capacities of 4.1 mmtpa each.[14] As of April 2020, trains 1-3 had nominal production capacities of 3.3 mtpa.[15]

According to the International Gas Union’s World LNG 2017 report, Nigeria was the fourth largest LNG exporter by share after Qatar, Australia, and Malaysia between 2015 and 2016.[16]

Nigeria LNG produced less in 2016 due to extended maintenance and unrest in the Niger Delta region.[16] In 2016 Nigeria LNG had announced a proposed 8.4 MMtpa liquefaction and purification two-train expansion at NLNG. Nigeria LNG is now considering smaller 4.3 MMtpa trains instead.[16] In April 2020 Nigeria LNG announced that construction of the US$10 bilion Train 7 at the terminal would be delayed until Q3 2020 due to the COVID-19 pandemic.[17]

Expansions

Train 7

There is a planned US$6.5 billion expansion project to add a seventh LNG processing unit to increase its total production capacity from 22 million tonnes per annum (Mtpa) to 30Mtpa.[9] In December 2019, after a one year delay, the final investment decision for Train 7 was reached, with project costs of approximately US$10 billion cited.[18] The advisors Templars announced in May 2020 that the project costs would be US$5.7 billion and that a consortium comprising leading engineering contractors Saipem, Chiyoda and Daewoo has been appointed EPC contractors with responsibility for detailed design, engineering and construction works on the project.[19]

In June 2021, construction began on Train 7.[8]

As of November 2023, construction of Train 7 was 52% complete. The 2024 GIIGNL report states that gas supply concerns were likely to be resolved due to the development of Nigerian deepwater gas fields.[20] In June 2024, TotalEnergies and NNPC took a positive final investment decision (FID) on developing the Ubeta gas field, which will supply the Nigeria LNG facility.[21]

Train 7 Financing

In March 2020, IJGlobal reported that Sumitomo Matsui Banking Corporation, Lehman Brothers and Guaranty Trust Bank had been appointed as financial advisors for the project.[22]

In May 2020, a US$3 billion export credit agency-backed debt package was signed to finance the expansion project. Sixteen international banks and ten Nigerian banks participated in the financing. Export-Import Bank of Korea (KEXIM) provided a loan of US$375 million and the Africa Finance Corporation also provided undisclosed debt financing in a tranche which is covered by African Export-Import Bank, KEXIM, Korea Trade Insurance Corporation and the Italian export credit agency SACE.[23]

Trains 8–12

In December 2019, the Nigeria National Petroleum Corporation announced early-stage plans to expand the terminal to 12 trains.[3]

In October 2023, NLNG said that Train 8 would no longer be possible due to gas supply issues.[11] Because of this, Trains 8 through 12 are considered shelved.

Outages

Bloomberg estimated in July 2017 that 30 percent of the oil sent by pipelines through the Niger River delta is stolen. Natural gas comes out of the well when drilling for oil and later because feed for LNG exports.[24]

At Agbada, in Niger River delta, the wells had been shut for three weeks summer 2017 following a likely deliberate pipeline leak caused by thieves.[24]

The leak on the pipeline taking Agbada’s crude to the Nigeria LNG Bonny export terminal in the Gulf of Guinea forced Shell to miss oil deliveries. It also hurt production of gas, which flows out of the wells with the oil.[24]

Supplies to Nigeria LNG decreased 10 percent during the Agbada outage.[24]

Nigeria LNG has considered at gas transport options other than vulnerable pipelines, but so far has not discovered an alternative.[24]

In January 2023, Nigeria LNG was forced to cancel as many as 10 cargoes due to pipeline vandalism that disrupted operations.[25]

According to the 2023 IGU World LNG Report, utilization at Nigeria LNG averaged 67% in 2022 due to flooding across its upstream gas supplies’ production regions which required the closure of several gas production wells. NLNG experienced multiple outages between August 2022 and the report's release in July 2023, and the facility declared force majeure in October 2022.[26]

As of August 2023, the force majeur declared the prior October was ongoing.[27]

Pakistan Import

Pakistan began talks in in 2017 to import crude oil LNG from Nigeria LNG.[28] Both Nigeria's state owned company (Nigerian National Petroleum Corporation) and Pakistan’s state owned companies (Pakistan Petroleum Limited and Oil and Gas Development Company) will be involved. Pakistan imports 4.5 million tons of LNG a year. The Express Tribune estimated the deal could increase that number to 9 million tons.

Currently Nigeria lacks adequate refinery capabilities. The 2017 talks with Pakistan include discussions to build refineries.[28]

Articles and resources

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 "NLNG – Nigeria LNG Limited". www.shell.com.ng. Retrieved 2022-06-06.
  2. ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 13, 2022.{{cite web}}: CS1 maint: url-status (link)
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Eklavya Gupte, Nigeria's LNG capacity to grow by 35% with Bonny plant expansion , S&P Global, December 27, 2019
  4. ↑ 4.00 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 2020 World LNG Report, page 102, International Gas Union, April 27, 2020
  5. ↑ 5.0 5.1 5.2 5.3 Gupte, Eklavya; Nigeria, Newsdesk (2019-12-27). "Nigeria's LNG capacity to grow by 35% with Train-7". www.spglobal.com. Retrieved 2022-06-29.
  6. ↑ 6.0 6.1 6.2 Reporters, Markets (2022-01-12). "Two years after FID, NLNG Train 7 project still facing delay". Markets Reporters. Retrieved 2022-06-29.
  7. ↑ 7.0 7.1 Ed Reed, Galp renews LNG deal with Nigeria LNG Energy Voice, February 13, 2020.
  8. ↑ 8.0 8.1 8.2 8.3 Construction Begins on Nigeria Train 7 LNG project. Pumps Africa. June 17, 2021.
  9. ↑ 9.0 9.1 9.2 Nigeria LNG Plant Expansion, Bonny Island. NS Energy. Accessed June 2022.
  10. ↑ "World LNG Report 2022". Retrieved 2022-07-26.{{cite web}}: CS1 maint: url-status (link)
  11. ↑ 11.0 11.1 Okonkwo, Omono (2023-10-12). "NLNG says 'Train 8' project will no longer be possible". Nairametrics. Retrieved 2024-07-18.
  12. ↑ Nigeria LNG, Wikipedia, accessed 21 September 2017
  13. ↑ Orji, Udenna. Nigeria Set to Become World's Second-largest LNG Supplier - Official, Downstream Today, 28 September 2009.
  14. ↑ Coping with security challenges of natural gas markets, IEA Gas Security Workshop at Paris: International Energy Agency, June 11 2011.
  15. ↑ The LNG Industry: Annual Report 2020, page 38, International Group of Liquefied Natural Gas Importers, accessed April 29, 2020
  16. ↑ 16.0 16.1 16.2 "2017 World LNG Report" International Gas Union, Accessed June 20, 2017.
  17. ↑ Iaian Esau, Nigeria LNG Train 7 heads for further delay Upsream Online, Apr. 2, 2020
  18. ↑ "Nigeria LNG to Boost Output by 35% With New Train" Bloomberg, Dec. 27, 2019.
  19. ↑ "Templars advises Lenders on a precedent-setting US$3 billion Corporate Financing for Nigeria LNG’s Train 7 Expansion Project" Templars press release, May 18, 2020.
  20. ↑ GIIGNL. The LNG Industry: Annual GIIGNL Report. June 2024.
  21. ↑ Staff, LNG Prime (2024-06-20). "TotalEnergies, NNPC take FID on new gas project to supply Nigeria LNG plant". LNG Prime. Retrieved 2024-07-18.
  22. ↑ "Nigeria LNG Complex Expansion" IJGlobal, Mar. 2, 2020.
  23. ↑ "Debt signed for NLNG Train 7" IJGlobal, May 18, 2020.
  24. ↑ 24.0 24.1 24.2 24.3 24.4 Paul Wallace, "Pakistan gives go-ahead for oil, gas import from Nigeria," Bloomberg, July 20, 2017.
  25. ↑ "Nigeria Cancels LNG Shipments After Pipeline Vandalism | OilPrice.com". OilPrice.com. Retrieved 2023-08-22.
  26. ↑ IGU. 2023 World LNG Report. July 2023.
  27. ↑ Reuters. Nigeria LNG says force majeure declared in October is continuing. August 9, 2023.
  28. ↑ 28.0 28.1 Zafar Bhutta, "Pakistan gives go-ahead for oil, gas import from Nigeria," The Express Tribune, September 1, 2017.

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