Country: Nigeria

Pulling Nigeria’s ailing economy from the brink calls for a radical improvement in efficiency within its oil & gas industry, writes Ofserv CEO Dimeji Bassir who presents opportunities to cut down the cost of production within Africa’s biggest oil market. To quote Joel Barker in The Business of Paradigms “It’s so easy to say no to a new idea. After all, new ideas cause change; they disrupt the status quo. They take people out of their comfort zones and create uncertainty… Plus, it is less work to do things the way we have always done it……less work, maybe. Costly, definitely” New ideas are resisted from greasy rig floors in the Niger Delta swamps to cushy business offices and conference rooms in regulator’s offices in Abuja; each, with very prohibitive costs of inaction. Yet it’s business as usual in Nigeria’s oil industry despite current economic realities in the country, which provide the impetus for a radical transformation of its cost base. Pulling the ailing economy from the brink calls for a radical improvement in efficiency within its mainstay industry. Dwindling daily production and significantly reduced foreign exchange earnings, and foreign reserves, establishes the urgency to drive down unit cost per barrel of oil produced. Simply stated, Today’s ‘Good’ is tomorrow’s ‘Not good enough’ and what sets us apart today will be the baseline tomorrow. The future belongs to those who act with urgency and foresight. A huge, yet untapped opportunity Successful upstream operations is underpinned by the ability to balance the trio of cost-schedule- production and maximise NPV, i.e. produce the most barrels in the quickest manner possible at the cheapest mean cost across a portfolio of assets. Incremental improvement in well delivery (drilling & completion) efficiency in the US had characterised the shale oil boom which effectively began in 2007. Efficiency gains cut well costs by a third and reduced cost per barrel by 75% in the decade between 2007 and 2017. In effect, America became an oil and gas power house within this period, doubled US Shale production and tripled total daily oil output. In Nigeria, the oil and gas industry is the largest revenue contributor to the Nigerian economy but production has declined by 40% from 2010 to date. Declining oil production presents major revenue challenges and precipitates chronic macroeconomic crisis in the short to medium term. Dimeji Bassir Reducing unit production costs by driving down well delivery costs presents an untapped opportunity to increase government earnings & reduce its fiscal deficit. Being the most complex, costly and highly specialised upstream development activity which easily accounts for up to 60% of oilfield development CAPEX, drilling presents a unique opportunity to reduce the cost of oil production. For this reason, in the early eighties, drilling engineers and other personnel operating in the UK’s North Sea recognised the need to learn from each other and compare performances across their respective drilling operations. This led to the formation of the drilling performance review (DPR) in 1989, a drilling benchmarking club. Most international operators who are value-driven continue to subscribe to the DPR till this day for the inherent benefit to their global operations and enterprise’s financial performance. In general, up to 60% of drilling time goes to Non-productive time (NPT) and inefficiencies which is known in drilling parlance as invisible lost time (ILT). The cost of ILTs, being an invisible factor, to the Nigerian oil industry is in the order of billions of dollars overspent annually. Improving drilling performance therefore is an enabler to reducing cost of oil production. Lower drilling costs stimulates more drilling activities which in turn increases production and reduces unit production costs. You can’t improve what you don’t measure Drilling performance in Nigeria is laden with tremendous inefficiencies. An indicative benchmark of an average Nigerian, and similar North American well reveals significant underperformance in the Nigerian well as measured by days to drill a 10,000 feet well. A 10,000 feet well routinely delivered in 10 days in North America could take as long as 85 days in Nigeria. This disparity is surmised to be causative of the consistently high well delivery cost in Nigeria. Disproportionately long well durations delays time to market (deferred production), reduces project NPV – costly wells reduces the number of profitable opportunities – which in turn reduces rig activities and associated demand for services. By top down estimates, the industry spends circa $11.4 billion to produce 1.25 million barrels daily and approximately $6 billion in drilling wells. A 30% performance gap between the authorised expenditure (budget) and actual costs as gleaned from an analysis of Nigerian wells represents a $1.8 billion a year opportunity. The relentless pursuit of excellence in well delivery begins with establishing key indicators which must be tracked with rigour and provides indication of drilling performance and efficiency trends. An excellent drilling efficiency metric commonly tracked is the dollar spend per reservoir foot of hole. US-based oil services research firm Spears & Associates, Inc. looking at this metric in US land operations from 2006 to date showed the cost of a foot of exposed reservoir falling by 75% in over a decade when considering what was paid to the contract driller. Similarly, the directional driller cost per exposed reservoir foot fell from $45 to $35, a decrease of 25%. In addition to the reduced cost per barrel, other implications of drilling efficiency gains break down as follows: Where there is a will, there is a way Investments in the Nigerian oil and gas sector declined by 70% between 2017 and 2021 closely correlating with the contraction in production output. Nigeria could only attract $3 billion in investments (approximately 5% of the total investment into the sector in Africa) in the five years between 2017 and 2022 despite having 38% of the continent’s total hydrocarbon reserves. As the government pushes for more transfer of resource ownership to locals via organised acreage farm-outs and International Oil Company (IOC) divestments, Nigeria’s oil industry’s uncompetitiveness is certainly at its pinnacle. For the sake

The Nigerian National Petroleum Corporation and TotalEnergies have announced a $550 million investment decision for the development of the Ubeta Field, a key onshore gas project expected to provide feedstock to Nigeria LNG – Africa’s biggest LNG export terminal. The project is located within OML 58, a TotalEnergies-operated onshore license that frequently suffers production disruptions due to pipeline vandalism and crude theft. The Ubeta field, discovered in 1964 and located northwest of Port Harcourt in the Niger Delta, is projected to produce about 350 million standard cubic feet (MMscf/d) of gas and 10,000 barrels of associated liquids daily. This development is expected to contribute significantly to the supply for NLNG’s Train 7. “Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West. I am pleased that we can launch this new gas project which has been made possible by the Government’s recent incentives for non-associated gas developments,” TotalEnergies’ Senior Vice President for Africa, Exploration & Production, Mike Sangster, said in a company statement. “Ubeta fits perfectly with our strategy of developing low-cost and low-emission projects, and will contribute to the Nigerian economy through higher NLNG exports.” At the official signing event at NNPC Towers, Group CEO Mele Kyari expressed appreciation for the Tinubu administration’s support in fostering a conducive fiscal environment that has been instrumental in reaching this significant FID. “The Presidential Executive Order is instrumental to us getting to this significant milestone, and we are now seeing the impact of the policy,” Kyari said. Slated for a 2027 start-up, the Ubeta gas condensate field in OML58 will be developed with a six-well cluster connected by pipeline to the existing Obite treatment plant. The development plan includes a 5 MW solar plant and electrification of the drilling rig to reduce carbon intensity. TotalEnergies and NNPC are also focusing on local content, with more than 90% of manhours expected to be worked locally. The Ubeta Field’s FID marks a significant step in NNPC’s ongoing efforts, supported by the executive branch, to address the challenges that have historically hindered foreign investment in Nigeria’s oil and gas industry. The project is expected to stimulate economic growth, create job opportunities, and generate substantial value for various stakeholders.

In a significant move towards harnessing Nigeria’s abundant natural gas reserves, state-owned NNPC Limited has forged a Project Development Agreement (PDA) with Golar LNG for the establishment of a Floating Liquefied Natural Gas (LNG) facility off the shores of the Niger Delta. Both companies have been in discussions around the launch of FLNG ventures for several months, having already signed a Memorandum of Understand and Heads of Terms for that purpose. The PDA was signed on June10th, 2024 in the presence of NNPC Limited’s key executives including Chief Financial Officer Umar Ajiya, Executive Vice President for Gas Power & New Energy Olalekan Ogunleye, and Executive Vice President for Upstream Mrs. Oritsemeyiwa Eyesan, alongside Golar LNG’s CEO Karl Fredrik Staubo. This collaboration represents a significant stride towards commercializing Nigeria’s gas resources, aligning with President Bola Ahmed Tinubu’s vision to expedite the economic exploitation of Nigeria’s gas assets. The agreement is poised to tap into the extensive proven gas reserves from shallow water resources off the Nigerian coast. The PDA delineates a comprehensive plan for monetization, leveraging approximately 400-500 million standard cubic feet per day (MMscf/d) to produce LNG, LPG, and Condensate. Both NNPC Limited and Golar LNG have underscored their dedication to achieving a Final Investment Decision (FID) by the close of Q4, 2024, with the aim of commencing gas production by 2027. Golar LNG Limited, recognized as a leading independent owner and operator of LNG infrastructure, brings its expertise in managing LNG carriers, floating storage and regasification units (FSRUs), and floating liquefaction (FLNG) vessels to this ambitious venture. The project would be the first FLNG carried by NNPC in Nigeria and follows several such ventures currently under development by the private sector, the most advanced of which is the UTM FLNG.

Nigeria’s private sector is driving the expansion of the country’s downstream gas infrastructure in partnership with state-owned NNPC Ltd, with companies like Tetracore Energy Group and Axxela recently launching new compressed natural gas (CNG) and liquefied natural gas (LNG) facilities. Tetracore Energy Group has commissioned a new CNG facility in Ogun State, with a capacity of 3.1 million standard cubic feet per day (mmscf/d). The facility will support gas availability along Nigeria’s Western-Southern corridor, where some of the country’s biggest industrial clusters are located. The facility is expandable to 6.2 mmscf/d, providing room for expansion as demand for gas grows. In addition, Tetracore broke ground on a small-scale LNG plant, which will supply gas to industrial and power customers in Nigeria’s Southwest, South-South, Southeast, and Northern markets. “Tetracore is investing approximately $40 million into the future LNG plant where we are breaking ground today, with commissioning expected at the same time next year,” CEO of Tetracore Energy Group, Kunle Williams, said during a grand ceremony in Ogun State on June 7th. Last week, NNPC and Axela commissioned a CNG plant in Lagos, with a capacity to deliver 5.2 mmscf/d of gas per day, serving around 3,700 cars daily and supplying gas to industries and other companies. The partners also announced plans to build six additional CNG service plants to expand access to alternative fuel for cars and industries. Tetracore and Axxela are representative of increased private sector participation within Nigeria’s midstream and downstream gas space. Seplat Energy, one of the country’s leading independent operators, is currently commissioning the 300 MMscf/d ANOH gas plant, while NIPCO Gas and NNPC have agreed last year to invest in the development of several CNG stations across the country,. The private sector’s investment in gas infrastructure is crucial for Nigeria’s energy and industrialization landscape, as it enables the efficient utilization of natural gas for various sectors, including transportation, power generation, and industrial applications. Nigeria is pivoting toward natural gas as an alternative fuel after eliminating a widely used but expensive petrol subsidy, resulting in a sharp increase in pump prices. The government aims to reduce costs and promote clean energy adoption in Africa’s leading oil-exporting nation by transitioning to gas.

Many African countries are harnessing gas and other cleaner and greener energies to drive their industrialisation journey. African countries including Ghana and Nigeria are investing in gas infrastructure and promoting its utilisation, and by extension are addressing energy poverty and environmental challenges. The Honourable Minister of Energy for Ghana, H.E. Dr. Matthew Opoku Prempeh, who recently confirmed his participation in the NOG Energy Week, taking place from 30 June to 4 July at the ICC, Abuja, amplified the need for competitive financing to propel natural gas projects.   Nigeria, boasting gas reserves of over 200TCF, recently announced plans to execute a gas strategy that will trigger the nations industrialisation and economic growth. NNPC Limited’s Executive Vice President for Upstream, Oritsemeyiwa Eyesan, shared the organisation’s plans to deepen domestic gas utilisation for power generation in a bid to support the manufacturing sector.  To transform the energy sector in West Africa, leveraging natural gas to drive economic growth and development is key. Gas for industrialisation contributes to increasing energy transition progress across the region. From revitalising key industries to fostering innovation, the strategic focus on gas underscores a commitment to propel West Africa towards a future built on energy security and economic resilience. Through the Decade of Gas Initiative by the Nigerian government, industry leaders have continually conveyed a collaborative approach aimed at unlocking the country’s energy resources. To drive progress in Sub-Saharan Africa’s energy market, energy stakeholders, government officials, regulators, and key industry players are convening at NOG Energy Week 2024 to deliberate on policies aimed at meeting West Africa’s energy demand. The event, themed “Showcasing Opportunities. Driving Investment. Meeting Energy Demand.”, is scheduled to take place from 30 June – 4 July at the International Conference Centre (ICC), Abuja.  Speaking on what stakeholders should expect at NOG Energy Week 2024, the Country Director – Nigeria & Portfolio Director – Africa for dmg events, Wemimo Oyelana, said, “Our commitment for almost 25 years has been to provide a platform where industry leaders can have frank conversations that proffer solutions to the different challenges the industry is facing. NOG Energy Week has contributed significantly to key policy development & implementation over the years. We look forward to having industry stakeholders discuss pertinent issues including; Attracting International and Regional Funding Into Nigeria’s Energy Sector, Optimising the Significance of Natural Gas as the Fuel Of Choice, and Driving Industrialisation as a Catalyst for Economic Growth.  Expected government officials and industry leaders at NOG Energy Week 2024 are; H.E. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), H.E. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), Dr. Matthew Opoku Prempeh, Minister of Energy, Ghana, Engr. Gbenga Komolafe, Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Farouk Ahmed, Authority Chief Executive, Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA), Mele Kolo Kyari, Group Chief Executive Officer,  NNPC Limited, Elohor Aiboni, Managing Director, Shell Nigeria’s Exploration and Production Company Limited, Dr. Philip Mshelbila, Managing Director & Chief Executive Officer, Nigeria LNG, Eberechukwu Oji, Managing Director and Chief Executive Officer, ND Western, Dr Ernest Azudialu – Obiejesi OFR, Chairman, Nestoil Limited, Adewale Tinubu, Group Chief Executive, Oando PLC, Julius Rone OFR, Group Managing Director, UTM FLNG Limited, Daere Akobo. F.IoD, F.IMC, CMC, Group Chief Executive Officer, PANA Holdings, among others.

The African continent stands at a pivotal juncture in the global energy sector with its abundant oil and gas reserves offering immense potential for economic growth, writes Constantine ‘Labi Ogunbiyi. However, while the continent holds significant promise, navigating the upstream oil and gas sector in Africa comes with a plethora of risks and potential setbacks that demand careful consideration and strategic planning. This is against a backdrop of cutbacks in international capital for carbon-intensive oil and gas developments and increasing competition for the same sources of capital. Innovative financing solutions are thus required to fill the void, but can only be truly successful if tailored to specific needs and adopted and respected by all stakeholders. Nigeria, Africa’s largest oil producer, epitomizes the complexities and opportunities within the continent’s energy sector. Over the past decade, the Nigerian oil and gas industry has grappled with insecurity, asset vandalism, and community unrest, leading to a decline in investment. This coupled with the need for the sanctity of contracts and a properly structured fiscal framework has seen investment in the sector decline to about US$5 billion per annum from highs of about US$22 billion per annum in 2012. Nigeria has an abundance of unexploited discovered natural gas (as well as significant prospective gas resources), now heralded as a “clean” transition fuel amidst global energy shifts. Nigeria should seek to attract significant investment during this transition era (which has also seen crude oil prices rebound) to take full advantage of this, thus retaining the value of crude oil and gas resources to enable it to position itself for its energy transition (towards net zero) agenda. A just energy transition, the paradigm that gained impetus at the December 2023 COP28 Conference, is intended to decelerate financing fossil fuel developments while supporting those most vulnerable to the impacts of climate change when facilitating the transition to clean energy. This is not simply a tweak to existing systems; it is a fundamental transformation towards a cleaner, more sustainable future. This shift is driven by environmental concerns, the changing balance of power on the global stage, and awareness that the energy-producing nations in the Global South (which produce only a fraction of global emissions) should be given a chance to “catch up” industrially, technological advancement as consumer demands. It is estimated that the country needs about US$25 billion of annual investment in the next 10 years to achieve crude oil output of three to four million barrels per day and 3 bcf per day of gas production for domestic consumption (an ambition). A lack of available infrastructure, whether because of existing compromised infrastructure through age or sabotage or simply a lack of new investment, and competition for capital regionally, poses challenges that will need to be overcome to achieve this. Inadequate infrastructure impedes the development and operation of oil and gas projects in Africa, increases project costs, delays timelines, and heightens operational risks. The new Government has declared that it is “open for business” and will take urgent steps towards solving the fiscal, regulatory, security, and other issues discouraging investment and operations in the nation’s petroleum sector – something that is urgently required to help to push its oil and gas production to the ambitious levels being targeted. The mechanisms are in place – the Petroleum Industry Act (PIA) has done a lot to bring an enabling framework to the industry, including by allowing the Nigerian National Petroleum Corporation (NNPC) and its subsidiaries to raise capital on their own balance sheets, whether by divestitures or development partnerships on their blocks (including risk service contracts, financial and technical service agreements and the likes), crude forward sales, debt or equity capital raisings, etc. Still, there is a need to focus more on implementing the PIA in a manner that restores investors’ confidence and boosts oil and gas production, ultimately increasing jobs, the country’s earnings, and prosperity. Whilst international commodity traders have increased their activity and funding of oil production in Nigeria, they rarely support the development of appraisal and near-production assets. Access to innovative capital structures for such capital-intensive projects, involving a more risk-reward approach will be key to developing such assets, as will the deepening of regional capital markets to bolster the capital available from institutions such as the African Export-Import Bank and planned new initiatives such as the African Energy Bank. Effectively, more “home-grown” solutions will be required. As international oil companies shift focus to deep offshore and gas-rich assets, indigenous companies and smaller operators are stepping in to fill the void. However, accessing capital remains challenging. Innovative financing models, such as the contractor risk service  model, offer a promising solution. This model, which involves contractors taking financial risks and receiving payment from production, incentivizes efficient asset development while mitigating risk for owners and operators. The contractor taking such risk, is effectively a co-financier of, and investor in, the development of the oil block – ensuring a service that would otherwise require immediate payment, to benefit from payment from oil and gas production (therein lies the contractor risk). The success of such models hinges on the support of all stakeholders, including operators, joint venture partners, financiers, regulatory authorities, and local communities. By aligning incentives and sharing risks, these partnerships can drive sustainable development and enhance investor returns. The recent completion of the FSO ELI Akaso infrastructure project by the Century Group (CG) (part of an alternative crude oil evacuation system (ACOES)), facilitated by the contractor risk service model, exemplifies the potential for collaboration to unlock value and foster growth. The ACOES is being developed as a result of the need to enhance production and supply security from oil blocks in the Eastern Niger Delta due to infractions and prolonged outages of the Nembe Creek Trunkline (historically one of Nigeria’s major oil transportation arteries evacuating up to 150,000 bopd of crude from the Niger Delta to the Atlantic coast for export). The CG model is “Made-in-Nigeria-for-Nigeria” but can be rolled out regionally (and globally too), in countries where access

Axxela Limited, a leading African gas and power company owned by Helios Investment Partners and Sojitz of Japan, has announced a Final Investment Decision to develop a 50 million standard cubic feet per day (MMscf/d) gas processing plant in Delta State, as it pushes towards sustainable energy solutions in Nigeria. This decision is bolstered by Axxela’s successful ₦16.4 billion bond issuance earlier this month, which was oversubscribed by 109 percent. The announcement comes as Axxela continues to expand its footprint in the energy sector, following last year’s agreement with BUA Group, one of Africa’s largest conglomerates, and CIMC ENRIC, a global leader in the energy equipment industry, to build a 700-ton-per-day mini liquefied natural gas (LNG) project. The new gas processing plant, expected to begin operations by the end of 2024, will start with a 12 MMscf/d modular unit and is designed for rapid expansion, with the potential to increase the plant’s output to 50 MMscf/d within 18 months. It is a key part of Axxela’s strategy to support the Nigerian government’s Decade of Gas initiative and to enhance domestic gas utilization. Strategically located in OML 152, the gas processing plant is expected to serve as a central processing hub for surrounding oil & gas operators, with the potential to transform gas flaring into a valuable economic resource, and significantly reduce CO2 emissions. “We are positioning to develop requisite infrastructure for natural gas processing and last mile distribution that creates market access for at least 20% of Nigeria’s gas demand,” Axxela’s Director of Business Development, Franklin Umole, said in a company statement. “Over the past two decades, we have been at the forefront of natural gas advocacy, and this project is a further reaffirmation of our dedication to gas infrastructure development and our vision to deliver innovative energy solutions across Nigeria and Africa.’’ In preparation for the project, Axxela has secured a long-term feedstock supply agreement with a leading local upstream company and established equipment supply arrangements with top-tier Original Equipment Manufacturers (OEMs). Upon completion, the processed gas will support various market segments, including Compressed Natural Gas (CNG) for vehicles, industrial feedstock, and decentralized power solutions, marking a significant step towards energy security and economic growth in Nigeria. Boost from successful bond issuance In a related financial achievement, Axxela recently raised ₦16.4 billion in an oversubscribed bond issuance, despite challenging economic conditions marked by rising interest rates and limited market liquidity. The funds will be instrumental in realizing the gas plant project. “This is a significant indicator of increasing investor confidence in our company’s reputation, brand, and performance,” CEO at Axxela Bolaji Osunsanya said. “The bond proceeds will support the development of our growth projects, signifying the importance of local and international capital markets in the development of critical infrastructure.” With the FID and successful bond issuance, Axxela looks to advance Nigeria’s gas infrastructure, support the energy transition, and meet the increasing demand for cleaner energy solutions.

Transoceanic Gas & Power has announced the start of pre-FEED work for a new 3 million tons per annum (mtpa) floating LNG (FLNG) project offshore Nigeria, in cooperation with Wison New Energies and NMDPRA. The company seeks to develop an offshore gas hub around OPL 289, an offshore license located next to the Pennington terminal. It wants to monetise some 500 MMscf/d of stranded offshore and swamp gas resources to produce 3 mtpa of LNG for the export market, 150,000 metric tonnes per annum (tpa) of LPG for the domestic market, 25,000 barrels of per day (bpd) of condensates, and 75,000 metric tpa of propane. The project’s plans also include a phased gas-to-power project of up to 1GW, starting with a floating power barge of 250 MW. Feedstock would come from gas resources on OPL 289 along with OMLs 86 and 88, two shallow water blocks that include the Pennington Terminal and were recently divested by Chevron and acquired by NNPC Ltd. “The model will help derisk upstream gas resourcing, and we guarantee at least 7 TCF of gas supply,” the company says on its website. The project is backed by private equity with the upstream gas development supported by financing from Quantum Suisse, Transoceanic Gas & Power said yesterday. It has revealed an impressive lineup of international contractors and partners it intends to work with to support various components of its future gas hub, including Wison New Energies for the design and EPC of the floating LNG unit and floating power barge, Samsum Heavy Industry (SHI) for the upstream facilities, Siemens Energy for the power and compression components, and Karpowership, Vitol and Socar of Azerbaijan as LNG off-takers. Transoceanic Gas & Power is not the first company to propose a floating LNG project in Nigeria, where several such ventures are currently being planned. However, the company’s vision is unique in its scale and diversity by integrating several revenue streams that ensure a maximal usage of the gas molecules including for LNG, LPG, condensate, and power with a mix of domestic and export allocations.

Shell has announced today the sale of its onshore Nigerian subsidiary, the Shell Petroleum Development Company (SPDC), to the Renaissance Africa Energy Company comprised of ND Western, Aradel Energy (former Niger Delta E&P), First E&P, Waltersmith and Petrolin. The deal is still subject to approvals by the Nigerian government and, if completed, would represent the biggest M&A for the country’s oil & gas sector. While many will see it as yet another exit by a major IOC from the Niger Delta, the transaction is a win for Africa’s local content development. The Renaissance consortium comprises some of Nigeria’s most respected upstream companies with a demonstrated track record of redeveloping mature assets in the Niger Delta. The group already successfully came together in 2011 to incorporate ND Western and acquire SPDC’s 45% interest in OML 34. Individually, each of Renaissance’s shareholders have also demonstrated an ability to operate in Nigeria and maximise domestic value creation. Aradel Holdings has grown an integrated oil, gas and refining business around Ogbele that has continued to expand over the years. Waltersmith follows a similar pattern as operator of the producing Ibigwe marginal field and the Ibigwe modular refinery. First E&P successfully commissioned the Anyala-Madu shallow water hub in 2020 and is working with Dangote on achieving first oil at the Kalaekule Field soon. The transaction also includes continued support from Shell – operationally and financially – through the transition. This is critical to prevent past errors made during divestments in Nigeria with too little attention given to financial resources allocated to assets operations and redevelopment post completion of the deals.   Last but not least, Renaissance is set to become a critical player in Nigeria’s energy transition journey as it takes over some of the country’s biggest gas upstream and midstream assets. Nigeria is currently faced with a gas supply shortage that must be addressed to meet the objectives of the Decade of Gas which seeks to grow gas penetration and develop a gas-based economy that is more sustainable and spurs industrialization. As Nigeria seeks to grow gas production, processing, and distribution, Renaissance will become a pillar of the country’s gas monetization strategy and a critical partner to the public and private sector players seeking to expand the country’s gas value-chain. In that regard, the appointment of Tony Attah, former Shell executive and Managing Director/CEO of Nigeria LNG for more than five years, to be Renaissance’s first MD/CEO is not insignificant.

VFuels LLC, a Houston- based oil and gas engineering firm, has signed a Front-End Engineering Design (FEED) contract with HSI Refining & Petrochemical Company Ltd for a modular refinery project in Nigeria. The contract, which was announced on 17th November, covers the design and engineering of a 5,000 barrels per day (bpd). The refinery will process crude oil produced from a marginal field located in Abia State. The project is expected to be completed in 18 months and will produce  Naphtha, Kerosene, Diesel, and Heavy Fuel Oil for the domestic market.  “The refinery is set to play a crucial role in meeting the growing demand for energy products in Abia state as well as fulfilling the need for decentralized refining infrastructures in Nigeria,” Vfuels said in an official statement. VFuels specializes in modular process equipment for the oil and gas industry, and has experience in designing and fabricating modular refineries, gas plants and early production facilities. Earlier this year, VFuels announced that it has been selected to carry out expansion works at the Waltersmith Ibigwe Refinery in Imo State. The contract allows VFuels to double the refinery’s capacity to 10,000 barrels per day (bpd), after it designed and installed the 5,000 bpd Phase, which was commissioned in 2020.

Nigeria and Germany have signed a historic agreement that will see Africa’s largest oil producer supply more gas to Europe’s biggest gas consumer. In an MOU signed by Nigeria’s Riverside LNG project, which works in the country’s Niger Delta, and Germany’s Johannes Schuetze Energy Import, Nigeria will export 850,000 tons of liquefied natural gas per year to Germany. The agreement also includes a provision for export volume to increase to 1.2 million tonnes in future. Under the deal, Nigeria is expected to export its first deliveries of liquified natural gas (LNG) to Germany in 2026, which will account for 2% of Germany’s total LNG imports. The deal was signed at the G20 Compact with Africa conference in Berlin on November 21, 2023, according to an official statement from the Nigerian presidency. In addition to the gas deal, Germany has pledged to invest $500 million in renewable energy projects in Nigeria, with a primary focus on rural communities. The investment is expected to create jobs and power sustainable economic growth in the country. “This agreement marks a new era of cooperation between our two countries,” Nigerian President Bola Ahmed Tinubu said. “It is a testament to the strong relationship between Nigeria and Germany and our shared commitment to sustainable development.” Nigeria’s economy, which has been grappling with the impact of falling oil prices in recent years, is expected to benefit positively form the gas deal and renewable energy investment.  The deal will also help Germany meet its energy needs while reducing its reliance on fossil fuels.

The Nigeria Liquefied Natural Gas (NLNG) Train-7 project has reached 52% completion, as Africa’s leading oil producer pushes to boost its gas sector and increase its revenue from gas exports. The multi-billion dollar NLNG Train-7 project is an expansion under construction at the 22.5 mtpa NLNG Terminal in Bonny Island, Rivers State. The project aims to increase capacity by an additional 7.6 mpta of LNG by building a seventh train of 4.2 mtpa capacity and debottlenecking the existing trains. But despite the substantial progress made in constructing Train-7, concerns remain over the future feedstock. These were notably voiced during an engagement session between the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote and Dr. Philip Mshelbila, the Managing Director of NLNG, at the gas company’s operational base at Bonny Island. NLNG management expressed concerns over the delay in initiating deep-water gas projects that are intended to supply feed gas for Train-7 and future expansions. This delay means the facility could be completed without a gas source for liquefaction. Mshelbila said NLNG is already facing difficulties in getting adequate gas supply, resulting in its six plants –Trains 1 to 6 – producing below 50% of their total installed capacity. Data collected by Hawilti shows that the facility was already operating at only 65% last year. While feed gas to the NLNG plants comes mainly from some of its joint ventures (JV) partners, including Shell Petroleum Development Company (SPDC) Limited, Total Energies and Nigerian Agip Oil Company (NAOC), Mshelbila said supplies have suffered disruptions due to recurrent vandalism of pipelines, facility failures and low production from aging wells. According to Mshelbila, NLNG is exploring several options to mitigate the challenge, including partnering with critical security agencies to curtail vandalism on the pipelines and working with their JV partners to increase their gas production. To boost performance of Trains 1 to 6, Mshelbila said the Board of Directors at the NLNG has approved for the company to procure gas from other international and indigenous gas producers.

Nigeria has introduced a new crude oil grade to the international oil markets with the exports of two cargoes of Nembe Crude Oil from the new Nembe Crude Oil Export Terminal (NCOET), NNPC Ltd said. The two initial cargoes of 950,000 barrels each have been exported to France and the Netherlands. Nembe crude is produced from onshore OML 29, operated by the NNPC/Aiteo Eastern E&P joint venture. Oil was previously exported via the Nembe Creek Trunk Line (NCTL) to Shell’s Bonny Oil Terminal. However, recurrent crude theft and pipeline vandalism have made the export route unavailable for months, severely curtailing production from OML 29. The unreliability of the pipeline has also affected Newcross E&P (OML 24), Eroton E&P (OML 18) and BelamOil (OML 55) who all rely on NCTL to access the Bonny Oil Terminal. Nembe crude has a low sulphur content and low carbon footprint due to flare gas elimination, NNPC said. This makes the new grade particularly attractive for European buyers. The oil also has an attractive Assay of API 29, which commands a premium to the global Brenth benchmark. The new export terminal was established following the Nembe Crude Oil Export Terminal, Nembe (Establishment) Order gazette on January 19th, 2021. It relies on the 2 million barrels Galilean 7 floating, storage and offloading (FSO) vessel able to export some 3.6 million barrels of oil every month. The FSO was converted from a crude oil tanker at the Dung Quat Shipyard in Vietnam. Several alternative crude oil evacuation systems have been put in place by operators who used to rely on the Nembe Creek Trunk Line. Newcross E&P put in place the MB Bryanston shuttle tanker with a storage capacity of some 800,000 barrels. Along with nearby producers, the company has been barging crude from OML 24 to the vessel before sending oil to the Bonny Oil Terminal for exports. Last month, Century Energy Services Ltd (CESL) also announced the completion of spread mooring installation at another 2 million barrels FSO, the ELI Akaso. The unit is owned by Energy Link Infrastructure Limited and will help debottleneck production from OML 18.

Unlocking the potential of gas to propel Africa’s biggest economy via industrialisation, jobs creation and energy access.

dmg Nigeria events and the Nigerian Content Development and Monitoring Board (NCDMB) have signed a 5-year extended Memorandum of Understanding (MoU) to further strengthen their collaboration on the Practical Nigerian Content (PNC) Forum. The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote and Country Director of dmg Nigeria events, Wemimo Oyelana signed the MOU on the sideline of the just concluded 22nd NOG Energy Week in Abuja. This partnership, in conjunction with Levmora Services, aims to enhance the value delivered to Nigeria’s energy sector through the PNC Forum. According to the Executive Secretary, “PNC is one of NCDMB’s flagship projects and we have consistently maintained it for about 10 years. It is an industry event that has been growing from strength to strength and we hope to continue to improve on the programme. dmg Nigeria eventshas been a good partner so far and we will continue to keep that relationship.” Since its inception in 2011, the PNC Forum has been operating under the Nigerian Oil & Gas Industry Content Development (NOGICD) Act, passed in July 2010, when the Nigerian Content level stood at 5%. Through collaboration with the NCDMB, the Executive Secretary has deployed the PNC Forum as the platform to consistently reveal yearly strategies to enhance Nigerian Content, which has now reached an impressive level of 54% as of 2022. According to Wemimo Oyelana, Country Director of dmg Nigeria events, “We are honored to extend our partnership with NCDMB for an additional 5 years to elevate the Practical Nigerian Content Forum to new heights. This partnership signifies our shared vision of empowering local content development and promoting Nigeria’s energy capabilities on a global stage. Together, we will continue to deliver a dynamic and impactful event that connects industry leaders, fosters innovation, and propels sustainable growth.” The 12th edition of the annual PNC Forum is scheduled to be held in Yenagoa, Bayelsa State from the 4 – 7 December 2023. The event will create an avenue for industry stakeholders to gather and discuss strategies that will further Nigerian Content implementation and investment. The NCDMB presents its scorecard and plan for the next 12-18 months, while industry players are able to devise strategies for sustainable growth and provide feedback to the regulator. Participants also have the opportunity to showcase their capabilities and expertise to potential partners and investors, witnessing Nigerian Content achievements firsthand at the Site Visit. The partnership between NCDMB and dmg Nigeria events will ensure that the Forum continues to be a success as the PNC Forum is a core part of the NOGICD Act to ensure the effective implementation of the Act. dmg Nigeria events reaffirms its dedication to providing platforms to facilitate collaboration between the private and public sectors to unlock the full local potential of the Nigerian Oil & Gas industry. For more information about the upcoming PNC Forum, visit www.pncnigeria.com, or email info@pncnigeria.com

Greenville LNG, a company producing liquefied and compressed natural gas for the Nigerian market, has officially inaugurated the first-ever Liquefied Compressed Natural Gas (L-CNG) station in the country today amidst efforts to boost domestic use of gas as a cleaner and cheaper fuel in Africa’s most populous country. Launched in Nigeria’s Kaduna state, the outlet seeks to transform the transportation landscape through enhanced gas distribution, which in turn curbs fuel shortages. The facility is expected to cater for a wide range of vehicles, including tricycles, buses, and other small vehicles, offering a cleaner and cost-effective alternative to traditional fossil fuels. “Both LNG and L-CNG offer compelling alternatives to traditional fuels, delivering 15-20% fuel cost savings and promoting eco-friendly choice,” Greenville notes in its online channels confirming the launch. “Notably, L-CNG will boost the economy by promoting local business and the transport sector in Kaduna.” As part of efforts to advance clean and cost-effective energy in Nigeria, Greenville says it is establishing 25 L-CNG distribution hubs to provide reliable energy to fuel stations across the country. The company already supplies gas to more than 25 major companies across Nigeria using over 300 LNG powered trucks as part of its innovative virtual pipeline system. Greenville has a network of LNG re-fueling stations strategically located in several parts of the country for LNG fueled trucks, tankers and buses. Founded in 2015, it installed 3 gas liquefaction trains at its Rumuji plant in Rivers state, which it commissioned in 2018. Although Nigeria holds some of the world’s biggest gas reserves estimated at over 200 trillion cubic feet (Tcf), they remain largely underdeveloped, benefiting industrialization and power generation overseas through LNG exports instead. But, boosting local consumption is now at the centre of the government’s agenda as it promotes gas as a transition and cleaner fuel. Boosting local gas consumption with reforms Nigeria’s downstream gas sector has particularly witnessed a raft of reforms since President Bola Tinubu assumed office on May 29 this year, amid push to boost confidence among domestic and international investors looking to do business in Africa’s biggest economy. The subsidy removal on gasoline is notably one of those changes. Cheap petrol prices, which Nigeria spent a fortune subsidising, had made it difficult for motorists to consider an alternative source of fuel such as Compressed Natural Gas (CNG). This also meant a poor investment case for potential investors. But with the subsidy removal levelling out the playing field for all fuels, Nigeria’s transport sector presents tremendous growth opportunities for the CNG and LNG industry. However, while subsidy removal incentivises motorists to go for a cheaper and cleaner fuel in gas, limited investments over the years also mean limited gas infrastructure, which could stifle growth opportunities for Nigeria’s domestic gas market. To bolster the shortfall in critical gas infrastructure, the Nigerian National Petroleum Company (NNPC) partnered earlier this year with NIPCO Gas Limited to deploy CNG stations across the country. The NNPC-NIPCO partnership, signed in August, aims at expanding Nigeria’s CNG infrastructure as it pushes for improved access to CNG, while speeding up the adoption of cheaper and cleaner alternative fuel for private cars and vehicles used for public transport. NIPCO Gas Limited already operates 14 CNG stations across Nigeria, and has converted over 7,000 vehicles to run on CNG, mostly in Benin City. NNPC is betting on NIPCO’s technical expertise and field experience to drive and expand the initiative. The project will be rolled out in phases. The first phase, supporting intra-city transportation, targets 21 CNG stations by Q1 2024. The second phase, to be ready in Q4 2024, will cover 35 CNG stations, servicing inter-city transportation. NNPC plans to bolster the programme with an additional 56 stations through its retail outlets across the country. Once fully operational, the stations can service over 200,000 vehicles daily, the state oil firm said, adding it expects more oil marketing companies from the private sector to participate in expanding CNG penetration and availability in Nigeria.

RusselSmith, one of Nigeria’s leading oil and gas maintenance and inspection solutions companies, has gained approval to deploy its industrial non-metallic additive manufacturing solution in the Nigerian oil and gas industry. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) gave the approval for the country’s first industrial 3D manufacturing solution for the oil and gas industry. RusselSmith’s additive manufacturing solution utilizes advanced 3D printing technology to locally produce fully functional and corrosion-resistant industrial components, saving time and cost for oil and gas companies ordering such parts through traditional supply chain methods. It also reduces companies’ carbon footprints, while improving efficiency in their operations. “This is a new milestone in the Nigerian energy sector, and we are excited to be leading the charge in industrial 3D manufacturing,” RusselSmith’s CEO, Kayode Adeleke, said in an official statement. “We are also proud that the NUPRC has once again exhibited its role in the industry as not just a regulator, but a facilitator of business in Nigeria. We are building the foundation for a digital supply chain across Africa, and this is just the beginning. With this approval, our non-metallic additive manufacturing solution is now operational and available to service the needs of the Nigerian market”. RusselSmith says its additive manufacturing solution utilizes high-performance materials such as super polymers and composites to produce finished parts that are less susceptible to material degradation and corrosion. Super polymers, ideal for diverse applications, are known to endure extreme conditions without compromising their functionality and desirable properties. Delivered in partnership with Roboze, a renowned provider of Industrial 3D Printing systems, RusselSmith is betting on its extensive technical capabilities to digitize supply chains, optimize production processes and advance manufacturing in the Nigerian oil and gas industry. In January, the Nigerian services company joined Roboze 3D Parts Network, becoming part of a network of specialized additive manufacturing centres that use Roboze ARGO Production technology and are able to deliver on complex designs and difficult engineering challenges. “We at Roboze are proud to be associated with this innovative development,” CEO of Roboze Alessio Lorusso said, referring to RusselSmith’s latest landmark approval in Nigeria. “The approval by the NUPRC for the use of this additive manufacturing technology is a significant step forward for Nigeria’s energy sector in embracing digitalization, and we are fully committed to supporting our partner, RusselSmith, with our expertise and global network to ensure the success of this solution.”

Century Energy Services Ltd (CESL), part of Nigeria’s Century Group, has announced the completion of spread mooring installation at the floating, storage and offloading (FSO) unit ELI Akaso offshore Bonny in Nigeria. The double hull terminal has a storage capacity of 2 million barrels and will provide hydrocarbons evacuation, storage, and offtake solutions for producers within the area. It has been classed by Bureau Veritas for oil storage services. The commissioning of the FSO is welcomed news for producers around Bonny who have struggled to evacuate their oil over the past few years due to the unavailability of the Nembe Creek Trunk Line (NCTL) and the Trans-Niger Pipeline (TNP). Both lines are the main options for operators to send their oil to Shell’s Bonny Oil Terminal for exports to global markets. The FSO ELI Akaso will be providing an alternative options to store and export oil and is expected to support production recovery around Bonny. “The FSO ELI Akaso, which offers hydrocarbon storage and export solutions, exemplifies our strategic approach to addressing both current and future demands of the oil and gas industry,” said EnergyLink Managing Director Adekolapo Ademola. The terminal is owned by Energy Link Infrastructure Limited (EnergyLink) and operated/managed by CESL. “With the FSO ELI Akaso Terminal, we have significantly advanced our collaboration in oil and gas infrastructure, positively impacting EnergyLink’s business approach and bottom line. The terminal is a remarkable accomplishment and a further testament to CESL’s energy infrastructure project delivery capacity and experience,” added Ken Etete, Group CEO at the Century Group. CESL has imposed itself as Africa’s foremost owner and operator of FPSOs and FSOs. Its fleet includes the FPSO Tamara Nanaye, previously deployed on OML 113, the FPSO Tamara Tokoni on OML 120, and the recently acquired FPSO Tamara Elmina (former Sendje Berge).

This story was first published on the Hawilti+ Terminal on 18 September 2023. Nigeria National Oil Petroleum Company (NNPC), the country’s state energy firm, and Indorama Eleme Petrochemicals Ltd., an entity of the Singapore-based Indorama Group, have signed an MoU that will allow both parties to explore opportunities across Nigeria’s hydrocarbon value chain, as Africa’s biggest oil producer seeks to boost domestic use of natural gas and associated liquids for economic growth. “This is a strategic collaboration to unlock Nigeria’s upstream sector, but more importantly, to partner downstream, in order to share the value chain,” CEO at Africa Indorama Energy Manish Mundra said in an official statement, adding that Nigeria’s gas reserves should position the country as one of the largest producers of urea in the western hemisphere. Privatized in 2006, the petrochemicals and fertilizer complex of Indorama Eleme has become one of Africa’s largest downstream facilities, proving a significant asset to monetize Nigerian gas. The fertilizer plant is well supported by port terminal at the nearby Onne port, and a gas pipeline of 83.5km for gas supply. Located in Port Harcourt, the complex started exclusively with the production of petrochemicals, including 440,000 tpy of olefins and 120,000 tpy of polypropylene. In 2013, a new polyethylene unit was added, which is able to produce 360,000 tpy. Beyond petrochemicals, Indorama Eleme has since made an aggressive venture into the urea and fertilizers business. By 2013, the company secured $1bn to develop a urea train with a capacity of 1.4 million tons per year (tpy), which it completed in 2015 and commissioned in 2016 (Line 1). A second urea train and fertilizer plant was eventually commissioned to enable Indorama Eleme to double its fertilizer production from 1.4 mmtpa to 2.8 mmtpa (Line 2). The company currently plans to expand within the next 6 years in the gas-based heavy manufacturing industries, including fertilizer, methanol, and petrochemicals. According to disclosures by the International Finance Corporation (IFC), Indorama is notably seeking to develop a third urea fertilizer line (Line 3) at the same site to grow urea production capacity to 4.2 mmtpa, To support such expansion, it will need a steady supply of gas feedstock. The agreement reached with NNPC could help monetize over 1.7 Tcf of gas and 100 million barrels of oil reserves. That monetization plan, according to the NNPC, includes downstream production of about 4.8 mmpta of associated products, including methanol, urea, and fertilizer for food security. “NNPC Limited is on the threshold of making value out of gas beyond any imagination,” GCEO, Mele Kyari said, adding as part of Nigeria’s Nigasification strategy to promote domestic utilization of natural gas “we are seeing an annual contribution of $3bn to the nation’s GDP and a lifetime contribution of $18bn to government revenue.” Nigeria holds some of the world’s biggest gas reserves estimated at over 200 trillion cubic feet, but they remain largely underdeveloped, benefiting industrialization and power generation overseas through LNG exports. Boosting local consumption is now at the centre of the government’s agenda as it promotes gas as a transition and cleaner fuel.

This story was first published on the Hawilti+ terminal on 2 September 2023. N-Sea, Netherlands-headquartered subsea services company, says it has expanded its area of operations to West Africa as it commences survey operations to support the development of the Nigeria-Morocco Gas Pipeline project. The project is led by Morocco and Nigeria’s national oil companies, the Office National des Hydrocarbures et des Mines (ONHYM) and the Nigerian National Petroleum Company (NNPC). The pipeline, which has been on the table for some time, is seen as an extension of the existing West Africa Gas Pipeline (WAGP) that was commissioned in 2011. From offshore Morocco, it will run onshore to northern Morocco, ultimately connecting to the Maghreb-Europe pipeline. “To realise this project, N-Sea have worked closely with vessel owner Rederij Groen and converted the seismic support vessel, 7-WAVES, into a survey vessel with state-of-the-art equipment,” the company said in its post on LinkedIn. “The project is being run with a “skeleton” crew on board the vessel, and all data is being transferred to shore, to the N-Sea Data Centre. Daily meetings with the Client Representative, FEED Engineer, Client and our N-Sea data processors are carried out to assess data quality and route alignment.” The 5,700 to 7,000 km pipeline, linking Nigeria’s Brass Island to Morocco, is gaining traction following the tightening of global gas markets and Europe’s search for alternative sources of gas imports. If completed, it would be the longest offshore pipeline in the world, with its total capacity expected to hold 30 billion cubic meters a year.

The Tetracore Energy Group, a fast-growing gas and power solutions provider based out of Nigeria, has launched a unique graduate management training program in Lagos last week. The initiative is part of the company’s commitment to grow domestic capacity and local content, as a time when African markets are rapidly expanding their domestic gas value-chains. The inaugural program includes 12 young professionals who will receive intensive training around gas, power and new energy, behavioral and soft skills, and business management skills. Tetracore aims at developing their talents and equipping them with the competences they need to solve some of Nigeria’s most pressing energy challenges around gas distribution, clean energy, and power systems. “Growing Nigeria’s energy sector requires the training of capable, competent, driven, and ambitious Nigerian young professionals. As we expand Tetracore’s footprint and welcome new investors, it is of strategic importance that we develop the skills and the manpower the company needs to deliver its sustainable energy solutions,” CEO Olakunle Williams said during the launch ceremony. Nigeria is recognized globally for having one of the most successful local content development frameworks. Under the oversight of the Nigerian Content Development & Monitoring Board (NCDMB), the country has successfully built capacity across the oil & gas sector and saw the establishment of several local businesses from upstream to downstream. However, rapidly evolving technologies and the rapid expansion of Nigeria’s midstream and downstream gas industry requires a new set of skills and competences. Private sector companies must continue to invest in workforce development and talent management as a matter of competitiveness and sustainability. Over the past three years, Tetracore has proven its commitment of building a true pan-African energy company and building local capacity along the way. In December 2020, it was amongst the first local businesses to commission its own locally assembled 15 MMscf/d gas Pressure Regulating and Metering Stations (PRMS) and has continued to grow domestic capacity ever since.

ExxonMobil’s subsidiaries in Nigeria are seeking to mobilise two deep-water drilling rigs for a period of three years, with options of a further two years. Under a tender opportunity issued this week, the companies are seeking to conduct drilling, completion, testing, temporary abandonment, and workover activities in water depth ranging from 600m to 1,800m. The American major is currently divesting its shallow water portfolio in the country to focus on the development of its deep-water assets, including OML 133 (Erha FPSO), OML 138 (Usan FPSO), OML 139 and OML 154 (Owowo discovery). In recent public appearances, ExxonMobil executives in Nigeria have hinted at the progress made on several deep-water opportunities in the country, without giving any specifics. Over the past few weeks, the company’s subsidiaries have issued a total of 23 tenders to support drilling operations for three years at least, including for the provision of subsea wellhead systems and of oil country tubular goods (OCTG). The Owowo (OML 139/154) and Bosi (OML 133) developments feature amongst NNPC’s key projects this decade. The development of Owowo could include the drilling and completion of 53 producers/injectors with a subsea tie-back to the Usan FPSO. Its FEED and contracting could commence in 2024, according to NNPC. The scope for the Bosi development is yet to be announced and could rely on the existing infrastructure of Erha, located on the same block. Liam Mallon, President of ExxonMobil Upstream Company, was amongst the first executives to meet President Tinubu after he took office in May. The meeting sent encouraging sign on the major’s commitment to Nigeria and the possibility of fresh investments being announced soon. In June, the company appointed Shane Harris as its new chairman and managing director in Nigeria.

This article first appeared on the Hawilti+ terminal on 12 August 2023. Golar LNG has signed a Heads of Terms with Nigeria’s state-owned NNPC Ltd in August 2023 and is currently discussing and developing four floating LNG and gas projects in the country, the company said. It targets to use its 2.4 mtpa Hilli FLNG unit, currently contracted offshore Cameroon until 2026, or its 3.5 mtpa MKII FLNG unit for deployment offshore Nigeria for a minimum of ten years. The MKII wil rely on an LNG carrier recently acquired and set for conversion. Nigeria has been increasing its outreach to global stakeholders and investors across the gas value-chain as it seeks to monetise its 206 Tcf of gas for the domestic and export market. Several gas export projects are currently planned, including pipeline and LNG export infrastructure. The most advanced of them is the UTM Offshore floating LNG unit, in which NNPC has taken a 20% stake and currently progressing toward a final investment decision (FID).

This article first appeared on the Hawilti+ terminal on 19 July 2023. Nigerian natural gas supply company Green Liquified Natural Gas Limited (GLNG) has secured its first debt funding as it looks to boost its operations in Africa’s biggest economy. The company sold NGN5 billion ($6.5m) of 10-year series bonds due 2033 under its NGN50 billion ($65m) Debt Issuance Programme. Nigerian financial guarantor InfraCredit provided guarantee for the facility.   The bond proceeds will enable GLNG to develop its Liquified Natural Gas plant and expand its CNG distribution and power-as-a-service capabilities, according to an official statement, noting the bond issue was oversubscribed by 108% by ten institutional investors. “This maiden bond transaction is an important milestone for GLNG, as it provides the leverage to finance our ambitious plan to establish a state-of-the-art LNG plant in Nigeria,” Chairman of GLNG, Olajide Rosiji, said in the statement. “More importantly, the success of this transaction reinforces our steadfast commitment to contribute to Nigeria’s clean energy and transportation landscape and foster sustainable economic growth in the region. GLNG already operates two gas compression and distribution facilities in Ogun State with combined capacity of approximately 10.5 MMscf/d, making it the largest in Nigeria. The company currently delivers an average of 4.2 MMscm of CNG per month to industrial and Autogas customers in southwest Nigeria where access to piped gas infrastructure has been lacking. Nigeria, Africa’s biggest oil producer, holds some of the world’s biggest gas reserves. But while the country’s gas has benefited industrialization and power generation overseas through LNG exports, its domestic utilization remains limited. Boosting local consumption is now at the centre of the government’s agenda as it promotes gas as a transition and cleaner fuel.