The Nation Newspaper

Tag: LNG

  • Onne port receives LNG-most advanced ship

    Onne port receives LNG-most advanced ship

    The Onne port  in  Rivers State at the weekend, received the Kota Oasis, a Singaporean-flagged, LNG-powered container ship at  Onne Multipurpose Terminal (OMT).

    The ship is one of the most advanced ships in the world and the first of its kind to visit Nigeria, dock at Onne port and the entire West Africa subregion.

    The environmentally friendly vessel, owned and operated by Pacific International Lines (PIL), represents a significant stride in sustainable shipping. The arrival of Kota Oasis underscores OMT’s commitment to green port operations and reinforces its role as a leading hub for containerised trade in Nigeria.

    The Kota Oasis vessel, findings revealed, has 260 meters length and boasts a Gross Registered Tonnage of 78,501 with a capacity of 8,350 Twenty-foot Equivalent Units (TEUs). The ship, which berthed at OMT at 10:00 hrs, features dual-fuel technology capable of running on both LNG and diesel. It also incorporates advanced exhaust gas recycling systems to significantly reduce methane emissions, alongside other features that enhance fuel efficiency and environmental safety.

    Speaking during a reception for the ship and its crew, Nicolo Scannavini, Managing Director of OMT, described the vessel’s arrival as transformative.

    “This vessel will be a game changer for trade connectivity between Asia and Nigeria,” Scannavini said. “It’s not only an engineering marvel, but also a testament to the shift toward cleaner, greener shipping solutions. We’re proud to host the Kota Oasis and look forward to more technologically advanced vessels calling at OMT.”

    He added that OMT currently services two major global shipping lines — PIL and Mediterranean Shipping Company (MSC) — and remains open to welcoming more international and national partners.

    Scannavini also praised the collaboration with the Nigerian Ports Authority (NPA) and its Managing Director, Dr. Abubakar Dantsoho, for enabling the smooth and successful berthing of the ship.

    Read Also: We’ll reshape economic diplomacy to build a progressive West Africa – Tinubu

    The head of operations, logistics, and procurement for PIL’s Regional Office, Dhruv Kohli emphasised PIL’s long-term commitment to the Nigerian market.

    “This vessel is part of a larger fleet upgrade aimed at achieving carbon neutrality by 2050,” Kohli stated. We are  proud to bring one of the most advanced ships in the world to Nigeria, a country that plays a vital role in our South West Africa Service rotation.”

    Kohli highlighted the Kota Oasis’s dual-fuel capabilities, 40,000-horsepower engine, and its role in enhancing direct trade routes from Nigeria to Asia — including transshipment to Singapore and direct service to China.

    “Onne is a critical port for us,” he added. “This deployment supports faster delivery times and sustainable logistics operations, strengthening our commitment to Nigeria’s economy and environment.”

    Representing the Onne Port Command of the Nigeria Customs Service, Deputy Comptroller John Ejeh reaffirmed the Service’s support for trade facilitation and ease of doing business.

    “We’ve always supported OMT, PIL, and other key stakeholders. We remain committed to providing the assistance needed to ensure successful operations at the port,” Ejeh said.

    Officials from the Nigerian Ports Authority (NPA), Nigerian Shippers’ Council (NSC), the Nigeria Immigration Service (NIS) and others also commended OMT and PIL for this landmark achievement, pledging continued institutional support to advance maritime innovation and efficiency.

  • PANDEF alleges marginalisation over mini LNG projects

    PANDEF alleges marginalisation over mini LNG projects

    The Pan Niger Delta Forum (PANDEF) has frowned at the exclusion of the Niger Delta region in the establishment of five mini Liquefied Natural Gas (LNG) plants by the federal government and Nigerian National Petroleum Company Limited (NNPC Ltd).

    In a statement, yesterday, by its national spokesman, Dr Obiuwevbi Ominimini, the group described the action as “unacceptable and an act of economic injustice.”

    The group lamented that despite the Niger Delta region being the primary producer of Nigeria’s gas resources, it has once again been sidelined in a critical economic development initiative.

    He said, “The decision to site all five Mini LNG plants in Ajaokuta, Kogi State, while denying the Niger Delta region its rightful share of such infrastructure, is a clear act of marginalisation and economic injustice.

    “This move by NNPC Ltd not only undermines the rights of host communities in the Niger Delta but also contradicts the federal government’s repeated commitments to equity, fairness, and resource control for producing communities as well espoused under the Petroleum Industry Act (PIA).

    “It is on record that apart from the legacy Bonny LNG plant in Rivers State, there is no other government involved LNG plant sited in the Niger Delta region.

    Read Also: 600,000 students received loans worth N104b – FG

    “Meanwhile, several gas projects in the region that were supposed to drive economic growth and create employment have been abandoned.”

    While condemning the federal government and NNPCL decision, the forum noted with dismay the deliberate abandonment of several gas projects in the region including Ogidigben Gas Project in Delta State, Brass LNG in Bayelsa State, and Olokola LNG in Ondo State.

    “These projects, if equally sited in the Niger Delta region as well deserved, would have even more significantly boosted Nigeria’s gas industry and equally provided economic opportunities for the people of the Niger Delta.

    “Their abandonment while new projects are being prioritized in other regions is a clear case of economic injustice, especially against our employable youthful population.

    “PANDEF has repeatedly raised concerns over the exclusion of qualified Niger Delta persons from the leadership of NNPC Ltd. This latest act of marginalisation is a direct consequence of that exclusion. If we had strong representation in NNPC Ltd, this level of injustice and systemic denial of our economic rights would not occur.

    “It is clear that policies affecting the Niger Delta are being made without due consideration for the interests of the region and its people.

    “We demand an immediate review of this decision and call on the federal government and NNPC Ltd to take steps to ensure that Mini LNG plants are also sited in the Niger Delta region.

    “While restating our commitment to peaceful engagement, PANDEF, as the voice of the Niger Delta, would like to emphasise that the people of the Niger Delta resist through all constitutional means any attempt to further impoverish our people while others reap the benefits of our God given resources.

    “We urge President Bola Ahmed Tinubu in the pursuit of his Renewed Hope Agenda to take urgent corrective measures to build on the peace which Niger Delta elders and leaders have built in the region.”

  •  NNPCL to establish five LNG plants in Kogi, says Akpoti-Uduaghan

     NNPCL to establish five LNG plants in Kogi, says Akpoti-Uduaghan

    The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to establish five mini-Liquefied Natural Gas (LNG) plants in the Ajaokuta Local Government Area of Kogi State by 2025.

    Senator Natasha Akpoti-Uduaghan, Chairman of the Senate Committee on Local Content, revealed this at the 13th Annual Practical Nigerian Content (PNC) Forum, according to a statement from her Chief Press Secretary, Arogbonlo Israel.

    The Kogi Central lawmaker described the development as a major milestone, noting that it represents the largest concentration of such projects in a single senatorial district in Nigeria.

    Read Also: Dangote, marketers seal deal to avert fuel scarcity at yuletide

    “We are grateful to NNPC and industry experts for this significant investment in Ajaokuta. Five mini LNG plants will be flagged off early next year, marking a transformative step for our community and the country. This is great news for Nigeria and a critical opportunity to establish Ajaokuta as a technology hub driving innovation and industrial growth,” she said.

    Akpoti-Uduaghan emphasised the need to redefine Nigeria’s local content strategy to drive innovation, sustainability, and global competitiveness.

    “For decades, Nigerian content has been synonymous with capacity building in the oil and gas sector, focusing on skills acquisition, education and infrastructure development. While these efforts laid a solid foundation, it’s time to look beyond capacity building to unlock Nigeria’s full potential,” she stated.

    She advocated for a shift from traditional approaches to a more dynamic framework that integrates policy refinement, competitive ecosystems, value chain optimisation and global market integration.

    “Nigerian content should not just be about transferring skills or localising supply chains in oil and gas. It must be a comprehensive strategy for national development, focusing on creating value, achieving self-reliance and fostering global competitiveness,” she said.

  • $3.5b LNG: Shell accuses Venture Global of alleged wrongful earnings as NLNG faces same offence

    $3.5b LNG: Shell accuses Venture Global of alleged wrongful earnings as NLNG faces same offence

    Shell has accused Venture Global of wrongfully earning $3.5 billion, according to a news report by Financial Times.

    The irony of Shell’s arbitration case against Venture Global LNG, United States of America (U.S.A.), is that Shell’s partner, the Nigeria Liquefied Natural Gas (NLNG), has been sanctioned by a London Arbitration Court and The High Court of Justice of England and Wales for a similar breach of LNG supply contract it failed to deliver due to an alleged unprecedented and historical improvement in LNG spot prices.

    The British oil major alleges that the United States (U.S.) gas giant (Venture Global LNG) redirected gas shipments to higher-priced spot markets instead of keeping its long-term contracts with European customers.

    Shell has accused U.S. gas company Venture Global of wrongfully earning $3.5 billion, after delivering LNG shipments to higher-priced spot markets following a commodities price spike after Russia invaded Ukraine in February 2022.

    Venture Global LNG had earlier on condemned Shell for its poor performance track record at its LNG facilities.

    Many LNG Industry watchers relate this allegation by Venture Global to NLNG’s London arbitration and court cases, where it was found that Nigeria LNG breached a contract for failing to deliver 19 cargoes of LNG, a contract it executed in January 2020, the arbitration panel was made up of John Beechey CBE, J William Rowley KC and Nevil Phillips.

    Further investigation from Online reports, reveals a staggering disregard of contract terms and conditions by NLNG. This is captured in an anonymised Judgement of The High Court of Justice of England and Wales issued against NLNG, on 31st July, 2024.

    Read Also: We are winning battle against bandits, oil thieves, say Service chiefs

    The allegations by Shell against Venture Global are surfacing ahead of arbitration hearings Shell and several other energy companies have initiated against Venture Global, a newcomer that has disrupted the global LNG market, as reported by Financial Times.

    Shell’s claim was based on a study commissioned by Compass Lexicon consultancy, which aimed to determine the extra revenue Venture Global had seemingly wrongfully earned by denying certain European customers their contracted cargoes.

    Shell Chief Executive Wael Sawan had expresssed his view on the Venture Global breach stating that “it is not in the spirit of what we have typically seen, nor is it the norm in LNG business.

    “The global LNG business has been built over the past 60, 70 years on the back of sanctity of contracts, on the back of really ensuring that suppliers and buyers live up to their part of the bargain.”

    The Global LNG Market is focusing on these proceedings as it will surely have a fundamental impact on future financial and legal ratings as well as stringent contract provisions to enforce and respect the sanctity of contracts between LNG counterparts.

    On the side of Nigeria LNG (NLNG) it is yet to be confirmed if it will proceed to the UK Court of Appeal, to seek an appeal against the judgment issued.

  • Govt issues licence to build floating LNG plant

    Govt issues licence to build floating LNG plant

    The Federal Government has issued a licence to construct (LCT) Nigeria’s pioneering floating liquefied natural gas (FLNG) facility to UTM FLNG Limited.

    This marks a giant leap in the country’s energy sector.

    The issuance of the LTC by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) last Friday was part of a major fulfillment of President Bola Ahmed Tinubu’s assurance in July, last year, to give necessary support to the Nigerian firm to actualise the landmark gas project.

    The President, while hosting the management of the company and its foreign partners at the State House in Abuja, pledged to remove all impediments to the timely completion of the project.

    The UTM FLNG plant, which is located offshore Akwa Ibom State, is expected to be completed and inaugurated in 2028 with gas production projected to begin the following year.

    Read Also: Senator Barau to Nigerians: support Tinubu to succeed

    The plant, with a capacity of 2.8 million tonnes per annum (MTPA), will produce LNG, liquefied petroleum gas (LPG), and condensate from re-injected gas at the OML 104 Yoho Field.

    The project represents a significant step forward in Nigeria’s energy sector, enhancing the country’s ability to harness its untapped 209 trillion cubic feet of natural gas for both export and domestic consumption.

    It is expected to leapfrog the national economy by ensuring availability of gas at lower cost, generate massive employment and multi-million naira business opportunities for Nigerians and other nationals.

    The presentation of the licence to the company at the NMDPRA headquarters at the weekend in Abuja was witnessed by key industry players, including the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.

  • Energy solution in North brightens, as LNG Arete unveils facility in Ajaokuta

    Energy solution in North brightens, as LNG Arete unveils facility in Ajaokuta

    A state-of-the-art mini-Liquefied Natural Gas (LNG) facility, developed in Ajaokuta, Kogi State by LNG Arete Limited, a wholly-owned Nigerian entity, is designed to pave the way for energy solutions in Northern Nigeria.

    According to a statement  by Project Director, LNG Arete Limited, Hajara Pitan, saying “This pivotal project aligns with the Federal Government’s strategic vision to optimize Nigeria’s vast gas resources and especially the Federal Government’s Autogas initiative.

    “The LNG Arete mini-LNG facility is designed to address the increasing demand for liquefied natural gas (LNG) across Northern Nigeria. Our facility has an initial production capacity of 7 million standard cubic feet per day (MMSCFD), with a large percentage of that capacity being dedicated to Autogas.

    Read Also: Queues persist, commuters stuck despite petrol price hike

    Through this Project, we aim to contribute to the building of a robust network for widespread CNG distribution which will drive the development of LCNG mother stations and refueling infrastructure across Northern Nigeria. This investment highlights LNG Arete’s dedication to offering more affordable and accessible CNG for vehicles and industrial use, presenting a cost-effective alternative to expensive diesel. Our efforts are closely aligned with the objectives of the Presidential Compressed Natural Gas Initiative (P-CNGi).

    “Our partnership with the P-CNGi marks a significant step forward in our mission to enhance energy access and sustainability in Nigeria,” stated Hajara Pitan. “By positioning LNG Arete as a key CNG supplier in Northern Nigeria, we are not only investing in local economic development but also contributing to a more secure and affordable energy future for the region. We are excited for the positive impact this initiative will have on our communities and the broader energy landscape. “LNG Arete Limited is a Nigerian company, dedicated to providing innovative solutions across the oil and gas sector. Our mission is to drive sustainable energy utilization for the benefit of all stakeholders, contributing to the nation’s economic development through responsible energy initiatives.”

  • Court rejects ex-Nigeria LNG manager’s bid to stop N1.6b  suit

    Court rejects ex-Nigeria LNG manager’s bid to stop N1.6b  suit

    The High Court of the Federal Capital Territory (FCT), Abuja has denied the request of former General Manager of Nigeria LNG, Mr. Godwill Dike to suspend a defamation lawsuit filed against him.

     The ruling was held on the 19th of March 19, 2024

     The N1.6 billion suit  was initiated by Mr. Patrick Olinma, Dike’s former colleague.

     Olinma alleges that Dike made false and damaging statements not only about him but also about other colleagues during his tenure at Nigeria LNG.

     These statements purportedly extended beyond internal communication within the company and reached individuals external to Nigeria LNG, including personnel at TotalEnergies.

    Olinma contends that these statements have tarnished his reputation.

    Mr. Dike, in an attempt to delay the legal proceedings, sought to halt the defamation case until the resolution of a separate case he  filed in Lagos.

    Read Also: 2027: Obi, Obidients are not our concern now, we are busy with governing Nigeria – Onanuga

     He argued that the outcome of the Lagos case could impact the defamation lawsuit.

    However,  Justice Abubakar H. Musa, dismissed Dike’s argument, stating that the two cases lacked substantial connection to justify a postponement.

     The  judge, after thorough deliberation, concluded that Dike’s request lacked merit and subsequently dismissed it.

     Consequently, the defamation lawsuit against Dike will proceed as scheduled.

     The decision marks a legal victory for Olinma, enabling him to pursue justice unhindered.

     The court’s firm stance underscores its dedication to ensuring the expeditious delivery of justice without undue delay.

  • PTI urges govt to encourage investment in CNG, LPG

    PTI urges govt to encourage investment in CNG, LPG

    Arising from its two-day conference, the Petroleum Training Institute (PTI) Effurun yesterday asked the Federal Government to motivate more investors to operate and stake their funds in the Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) technology.

    Delivering the communique on the conference tagged: “The 3rd Edition of the Biennial International Conference on Hydrocarbon Science and Technology (ICHST),” in Abuja, the PTI Director of Research and Development, Dr. Tina O. Isichei, called for the encouragement of investment in gas in order distribute it to satisfy the domestic growing energy needs of various offtakers that are far off the pipelines.

    Her words: “Government should encourage more investors to participate and invest in Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) technology to utilise gas and distribute it to satisfy the domestic growing energy needs of various offtakers that are far off the pipelines.”

    She also urged the government should encourage more Tertiary Institutions and corporate bodies to go off the National Power Grid (PHCN) by investing in CNG, LPG or renewable energies since this energy usage is cleaner, cheaper, and environmentally friendly.

    PTI however sought collaboration between key stakeholders and the government is panacea for unlocking Nigeria’s gas potential in a sustainable manner.

    The Institute said the domestication of oil and gas technologies is the most promising approach to revamping the industry; therefore, government should ensure in-country domestication of natural gas development for economic transformation.

    Isichei asked the government develop adequate gas infrastructure and provide enabling commercial and fiscal terms.

    Read Also: ‘Petrol landing cost, forex, distribution affecting price’

    He urged the stakeholders in the industry to collaborate with academic institutions in the country such as the PTI, to research into the application of AI and Big Data technology to improve the gas exploration, distribution and utilisation in Nigeria.

    She said “Data mining, Block chain, AI and Internet of Things (IoT) are gaining interest by Exploration and Production (E&P) companies, agricultural sectors, refineries andpetrochemical companies; more investment needs to be carried out on their effective utilisations in-country.

    PTI said the Ministries of Petroleum Resources (Oil) and the Ministries of Petroleum Resources (Gas) must ensure the integrity and security of supplies of CNG, LNG to the various plants thereby increasing gas penetration and utilization by local users, for power, transportation, industrial and domestic purposes.

    The institute insisted Nigeria should ensure the domiciling of the proposed African Energy Bank in-country to easily facilitate oil and gas energy projects financing.

    She said for  Nigeria to be among 50 developed nations by the year 2050, there is the need for vigorous efforts to support R&D for the purpose of domesticating many technologies.

     “Nigeria must expand sources of funding R&D to PTI and other academic institutions through incentives like tax credit etc. Research should be coordinated so that outputs can be market driven,” she said.

    According to her, due to the strategic uniqueness of PTI in the oil and gas industry and the need to deepen local capacity, NNPC Ltd, Regulators and Major Oil Companies should partner with PTI in human capacity development in the oil and gas value chain and infrastructural upliftment to enhance its service delivery.”rising from its two-day conference, the Petroleum Training Institute (PTI) Effurun yesterday asked the Federal Government to motivate more investors to operate and stake their funds in the Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) technology.

    Delivering the communique on the conference tagged: “The 3rd Edition of the Biennial International Conference on Hydrocarbon Science and Technology (ICHST),” in Abuja, the PTI Director of Research and Development, Dr. Tina O. Isichei, called for the encouragement of investment in gas in order distribute it to satisfy the domestic growing energy needs of various offtakers that are far off the pipelines.

    Her words: “Government should encourage more investors to participate and invest in Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) technology to utilise gas and distribute it to satisfy the domestic growing energy needs of various offtakers that are far off the pipelines.”

    She also urged the government should encourage more Tertiary Institutions and corporate bodies to go off the National Power Grid (PHCN) by investing in CNG, LPG or renewable energies since this energy usage is cleaner, cheaper, and environmentally friendly.

    PTI however sought collaboration between key stakeholders and the government is panacea for unlocking Nigeria’s gas potential in a sustainable manner.

    The Institute said the domestication of oil and gas technologies is the most promising approach to revamping the industry; therefore, government should ensure in-country domestication of natural gas development for economic transformation.

    Isichei asked the government develop adequate gas infrastructure and provide enabling commercial and fiscal terms.

    He urged the stakeholders in the industry to collaborate with academic institutions in the country such as the PTI, to research into the application of AI and Big Data technology to improve the gas exploration, distribution and utilisation in Nigeria.

    She said “Data mining, Block chain, AI and Internet of Things (IoT) are gaining interest by Exploration and Production (E&P) companies, agricultural sectors, refineries andpetrochemical companies; more investment needs to be carried out on their effective utilisations in-country.

    PTI said the Ministries of Petroleum Resources (Oil) and the Ministries of Petroleum Resources (Gas) must ensure the integrity and security of supplies of CNG, LNG to the various plants thereby increasing gas penetration and utilization by local users, for power, transportation, industrial and domestic purposes.

    The institute insisted Nigeria should ensure the domiciling of the proposed African Energy Bank in-country to easily facilitate oil and gas energy projects financing.

    She said for  Nigeria to be among 50 developed nations by the year 2050, there is the need for vigorous efforts to support R&D for the purpose of domesticating many technologies.

     “Nigeria must expand sources of funding R&D to PTI and other academic institutions through incentives like tax credit etc. Research should be coordinated so that outputs can be market driven,” she said.

    According to her, due to the strategic uniqueness of PTI in the oil and gas industry and the need to deepen local capacity, NNPC Ltd, Regulators and Major Oil Companies should partner with PTI in human capacity development in the oil and gas value chain and infrastructural upliftment to enhance its service delivery.”

  • Sani inaugurates 20,000-capacity LNG, LCNG gas hub in Kaduna

    Sani inaugurates 20,000-capacity LNG, LCNG gas hub in Kaduna

    Kaduna State Governor, Senator Uba Sani, has inaugurated the first-ever Liquefied Natural Gas (LNG) and Liquefied Compressed Natural Gas (LCNG) facility in Nigeria with daily capacity of 20,000 tonnes for distribution across the country.

    Inaugurating the LCNG facility in Kakau area, along Kaduna/Abuja highway, Governor Sani who was represented by the Commissioner of Public Works and Infrastructure, Architect Ibrahim Hamza, said he was delighted to be part of the historic event, adding that the gas would go a long way to reduce socio-economic hardship caused by fuel price hikes and currency fluctuations in the global market.

    The project is spearheaded by Greenville LNG, having 20,000 metric tonnes capacity to be distributed across the country from Kaduna as the pivotal station, even with 25 hubs across the country.

    Chairman and Chief Executive Officer of the GreenVille LNG, Eddy Van Den Broeke, said the mission of the company extended beyond addressing fuel shortages, adding that it encompasses contributing to a greener and more sustainable Nigeria.

    “As we inaugurate this Kakau station, we also unlock investment opportunities for local businesses in Kaduna State’s industrial and automotive gas sectors,” Broeke said.

    Governor Sani congratulated Broeke on the milestone.

    He said: “Since your establishment in 2013, you have been revolutionising the way Nigerians access and utilise energy resources.

    Read Also: Tinubu will present 2024 Budget to NASS in November – Senator Adeola

    In a time marked by volatile fuel prices and currency fluctuations in the global market, Greenville LNG presents a robust solution in the form of LCNG. This change is not only embraced but enthusiastically welcomed in Kaduna State. It promises to bring not only economic growth but also the revival of various Kaduna-based industries, including textiles, machinery, steel, aluminium, as well as the automotive and oil and gas sectors.

    “The provision of a stable power source through the L-CNG gas hub is of paramount importance for micro, small and medium-sized businesses and industries. The development of these hubs will also help in addressing Kaduna State’s pressing need for energy security.

    “The transportation sector will benefit a great lot from the introduction of L-CNG. A significant number of keke riders ply the roads of Kaduna daily. For these riders, LCNG represents a cost-effective alternative to high-priced PMS, offering financial relief and reduced stress. Additionally, it promotes ecological peace, as CNG is renowned for its eco-friendliness and emission of less harmful pollutants, ensuring the safety of both our citizens and the environment.

    “Our administration is committed to making Kaduna a business hub. Our energy needs are enormous. The Greenville Initiative will reenergise the business environment and provide employment opportunities for Kaduna residents. Energy is a major driver of business. With energy, small businesses will spring to life again. Youths would not only be employed in numbers, they would also have the opportunity to create and innovate. We therefore request Greenville LNG to kindly consider providing more gas hubs in Kaduna. “

    “The Kaduna State Government eagerly anticipates the positive impact that this groundbreaking initiative will bring to our State and the nation as a whole. We shall give Greenville LNG all the support it requires to make this initiative a resounding success”.

  • Hungary interested in Nigerian crude, LNG

    Hungary interested in Nigerian crude, LNG

    At a time that international crude oil market is getting more competitive, the Hungarian Government has indicated interest to purchase crude oil and Liquefied Natural Gas (LNG) from Nigeria.

    The Hungarian Ambassador to Nigeria, Professor Gabor Ternak, who disclosed this during a courtesy call on the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru,  in Abuja, said the decision to import crude oil and LNG from Nigeria was informed by the need to bridge the current supply gap being experienced in Hungary.

    “Hungary depends on oil importation to serve its energy needs as the country is non-oil producing. We want to diversify our sources of crude oil and LNG import and we are considering purchasing these products from Nigeria,” Ambassador Ternak stated.

    The NNPC’s Group General Manager, Group Public Affairs Division,  Mr. Ndu Ughamadu made this known in a statement on Wednesday.

    He said the Nigerian crude oil would be of great help to Hungarian Refineries involved in large scale commercial refining.

    The Hungarian envoy stated that Nigeria could also leverage on the bi-lateral relationship with his country by engaging the services of Hungarian firms that specialize in repairs, maintenance and building of refineries as well as medical services.

    He said that Hungarian universities with many years of oil and gas engineering expertise, could assist Nigeria in the areas of capacity building of oil workers.

    In his remarks, the NNPC GMD, Dr. Maikanti Baru, stated that the Corporation had commenced tendering process for the selection of the 2018 crude oil off-takers, adding that Hungarian companies could utilize the opportunity by participating in the exercise to maximize value from direct purchase, rather than going through a third party.

    “If you don’t participate in the tendering process, you would have to buy the products from one of the traders. However, if you participate with companies and refineries that meet our requirements, they could be shortlisted as off-takers,” The GMD averred.

    He explained that Hungary could purchase LNG through “spot cargo,” an arrangement in which excess production is given to registered off-takers with the Nigerian Liquified Natuaral Gas Limited (LNNG).

    “Normally, gas business is a long-term business and NLNG is not different, we already have existing 20-year contract that will expire by 2022. Nevertheless, we have what is called “spot cargoes”, when there is excess production, and the current contractors have gotten there share as enshrined in the contract, the excess production will be given to registered off-takers in the system,” Dr. Baru averred.

    He said Hungarian companies could submit their profile to NLNG for possible engagement as off-takers of spot-cargoes after meeting the standard requirements.

    The NNPC GMD stated that works on refurbishment of the Corporation’s refineries through original builders of the plants had commenced and that the Hungarian firms with requisite expertise could be considered through subcontracting by the main contractors.

    He said that NNPC through its subsidiary institution, the Nigerian Leadership Academy (NLA), would look into possible areas of collaboration with the Hungarian Universities for in-country capacity building of oil and gas workers.

    As part of the Corporation’s diversification plans, Dr. Baru said the NNPC, which has the largest medical facilities in the country from a single entity, was trying to put its 52 clinics across the country into commercial use, starting with its clinic in Abuja.

    He said NNPC would collaborate with Hungarian and other reputable companies that have proven capabilities to set-up world-class medical facilities for heart, spinal and brain surgeries as well as physiotherapy and specialized laboratories services that can compete globally and save Nigerians the burden of traveling abroad for treatment.