Nigeria Is Moving Forward to Expand Bonny Island

Nigeria Is Moving Forward to Expand Bonny Island

OilNigeria is moving forward with the gas expansion to its liquefied natural gas (LNG) capacity by a third. The 12 billion programs to expand Bonny Island terminal has been approved. It will help Nigeria to compete with the biggest producers of the fuel.

The designs and engineering contracts has been signed with three major oils companies (Eni., Royal Dutch Shell and Total). The race to boost production to meet the rising demands from Asia to Middle East has started. The plan is to boost production to 30 million tons by 2024. Total a Nigeria LNG shareholder stated the plant expansion in Bonny Island is “very important” as the current market is “booming again”

“Our vision is to be a global player that helps to build a better Nigeria,” Tony Attah, Nigeria LNG’s chief executive officer, said in London. “We are looking forward to the growth. When I am talking about growth I am talking about Train 7. We have the support we need, we have the support from the shareholders, from the government, from the board of directors.”

Per the International Energy Agency in Paris, Australia, Qatar and the U.S. could account for 60% of global LNG supply by 2023. Nigeria produced 7% of the super-chilled fuel last year, it has the possibility and capacities to produce more if they are expanding their plants.

Keeping up with the demand requires Nigeria to invest. Train 7 will coast as much as $6.5 billon to build, with another $5 billion to be spent on wells and pipelines needed to transport the crude to the plant for processing.

Nigeria LNG is seeking $7 billion from the global financial markets. The expansion project was stalled for many years under previous administrations. The expansion is needed if Nigeria wants to continue to be the 4th country to produce LNG.

In March of this year, the forecast for LNG demand was estimated to be on the rise by 72% between 2017 through 2030 per Bloomberg New Energy Finance.

In 2016 Nigeria supplied 21 countries, in 2017 Nigeria increased its reach to 24 countries. Nigeria’s current customers are asking additional volumes from the new plant, the demand of LNG has been on the rise for China and India.

Nigeria has open the doors to become one of the major players in the LNG market. By expanding Bonny Island, it will increase the GDP and self-reliance for Nigeria but also continue to strengthen their positions on the world stage.