Nigeria: Multinational Firms Sign Pact to Develop Liquified Natural Gas Plant

Text of report by Nigerian newspaper Vanguard website on 7 November

[Report by Hector Igbikiowubo: Multinationals Plan LNG Plant in Nigeria...To Spend $10m on Feasibility Study]

A GROUP of investors including multinational upstream oil and gas industry operators have signed a Memorandum of Understanding (MoU) to participate in a consortium to assess the feasibility of developing a Liquefied Natural Gas (LNG) plant in Nigeria. The group have also committed to spend $10m (about N1.2 b) on the feasibility study to guide their investment decision.

The group includes Centrica Plc, StatoilHydro ASA (Statoil ASA), and Consolidated Contractors Company (“CCC”).A statement released by the Statoil ASA explained that the agreement, for an initial 18 month period, with an option to extend, would see Centrica and StatoilHydro ASA (Statoil ASA) each taking a 37.5 per cent interest in the consortium, with CCC holding 25 per cent.

The feasibility study will include analysis of potential feed gas, LNG plant locations including local infrastructure and end markets. Centrica, which holds two exploration licences in Nigeria, along with CCC and other Nigerian companies, is broadening its search for new sources of gas to supply its British Gas, European and North American customers. Its current Nigerian work programme will see exploratory wells in its offshore/onshore block 276 commence in 2008.sources to this project at a pivotal stage of the development of Nigeria’s Gas strategy.

We look forward to working with all key stakeholders and are committed to contributing to the government’s ambitions to develop Nigeria into a major gas producer”. Marwan Salloum, Vice President of CCC said: “CCC is proud to be associated with this project not only because of the caliber and experience of its co-sponsors but also for the potential value it sees bringing to Nigeria in terms of the much needed internal infrastructure development that may be associated with the LNG Project”.

The Nigeria Liquefied Natural Gas (NLNG) currently operates five trains with the construction of a sixth train underway and plans for trains 7 & 8 being fine-tuned. It is expected that when train six comes on stream, the total capacity of the NLNG would be 22 million metric tons per annum.

Plans have also reached advanced stages for construction of the Brass LNG and the Olokola LNG as part of government’s efforts to expedite gas utilization and monetisation in the country.

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Originally published by Vanguard website, Lagos, in English 7 Nov 07.

(c) 2007 BBC Monitoring Africa. Provided by ProQuest Information and Learning. All rights Reserved.