Experts say Nigeria Needs to Export Higher LNG Volumes
Kayode Oluwadare, a Regional Energy Partner and Director at Energy Compact, has suggested that Nigeria should focus on exporting higher LNG volumes to Germany and explore additional markets to meet the growing global demand for LNG.
He noted that the current global demand for LNG is 400 million tons per annum (mtpa), with projections indicating a demand of around 700 mtpa by 2030.
Earlier this month, Nigeria signed a memorandum of understanding with Germany to supply gas through the Riverside LNG project, initially at 850,000 tons per annum, expanding to 1.2 million tons per annum. Oluwadare emphasizes the need for Nigeria to consider broader LNG export projects.
The source said: “LNG business is a business of numbers, economies of scale, the bigger the better, and the numbers presented are not encouraging especially when you consider the fact that many countries in Europe, Asia, and even Africa need LNG and are building import terminals for LNG.”
The source suggests that the Nigerian government should allow the private sector to take the lead in the gas business, as it can drive efficiency and attract investors to the gas sector. The private sector is seen as better positioned to address efficiency issues compared to the public sector.
“What the private sector needs is regulatory assistance from the government so they can drive gas business in Nigeria.”
Related Posts
Riverside LNG, a special purpose vehicle (SPV) of GasInvest, specializes in producing and selling small-scale liquefied natural gas (LNG). Currently, its production capacity is 700 tons per day of LNG, with plans for future growth to reach 1,400 tons per day in subsequent phases.
Riverside LNG aims to serve various markets, including domestic, coastal regional, and European markets, offering its LNG products. The company operates under GasInvest, its parent company, which is actively engaged in Nigeria’s natural gas sector.
