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Tag: NLNG

  • NLNG explains cooking gas price hike

    The Nigeria Liquefied Natural Gas Limited (NLNG) has stated that the high cost of liquefied petroleum gas (LPG), commonly called cooking, was caused by shipping cost, delay of cargo discharges at receiving terminals in Lagos and the fact that its price is based on international price index.

    Its General Manager, External Relations, Kudo Eresia-Eke in a statement, stated that the company noticed recent media reports on LPG price increases in the domestic market and it has become imperative to explain some of the causes of the price increase.

    He said Nigeria LNG’s domestic LPG price is based on an international price index plus 50 per cent of the shipping cost of delivering the product to receiving facilities in Apapa-Lagos.  That price is invoiced in naira at the prevailing official interbank exchange rates, contrary to erroneous assertions made in parts of the media.

    The reality of this is that although LPG is produced and consumed locally, the product, like crude oil, is an internationally traded commodity with an international price benchmark, open to global demand and supply pressures.

  • NLNG opens engineering lab at UNN

    The Nigeria Liquefied Natural Gas (NLNG), has commissioned a multi-million naira engineering building with state-of-the-art equipment at the University of Nigeria, Nsukka (UNN). The laboratory is the fifth of such projects donated to tertiary institutions under the NLNG’s University Support Programme.

    Unveiling the edifice, Enugu State governor Ifeanyi Ugwuanyi said the gesture indicated NLNG’s commitment to its Corporate Social Responsibility (CSR). He noted that the assistance was part of the dividends of mineral resources.

    Ugwuanyi, represented by his deputy, Mrs Cecilia Ezilo, praised the firm for choosing the UNN as one of the beneficiaries of the project. The governor hailed the Vice-Chancellor, Prof Benjamin Ozumba, for ensuring the completion of project.

    Prof Ozumba said the agreement for the implementation of the project was signed on June 20, 2014, barely two weeks after his assumption of office. According to him, the NLNG and the university agreed to use a grant of N340 million to construct the laboratory and stock it with state-of-the-art equipment to promote learning and research.

    He said because of the unstable foreign exchange rate, the university injected additional N212.15 million to to complete the project.

    The VC explained that the building sits on 1092.24 square metres area, with seven laboratories and seven standard offices.

    He said: “We have procured engineering equipment, 92 items of Computer-Aided Design (CAD) gadgets and pieces of furniture to flag off the building.”

    Ozumba praised NLNG for choosing UNN in the first phase of the initiative.

    NLNG Managing Director of Tony Attah said the University Support Programme was set up to provide “structured support” for the development of research and scholarship in higher institutions. He said six varsities in the six geopolitical zones were selected to benefit from the first phase of the programme.

    “In picking the beneficiary universities, excellence was the key determinant,” he said.

    Attah, represented by the NLNG Deputy Managing Director, Mr Sadeeq Mai-Bornu, explained that the six institutions were picked based on independent rankings by the National Universities Commission (NUC) and World University Ranking.

    Besides supporting teaching and research, the NLNG boss said the project was aimed at training next generation of engineers for the nation’s development.

    Other universities that benefitted from the project were Ahmadu Bello University (ABU), University of Port Harcourt (UNIPORT), University of Ilorin (UNILORIN), University of Ibadan (UI) and the University of Maiduguri (UNIMAID).

     

  • NLNG awards scholarships to Nigerians

    NLNG awards scholarships to Nigerians

    Nigeria Liquefied and Natutal Gas Limited has awarded a total of 3,053 scholarships to 10 Nigerian students. This is part of the company’s education intervention programme for deserving students at post-primary, undergraduate and post-graduate levels of education.

    The beneficiaries – among whom is a visually impaired female Law Graduate from Bonny Island, NLNG’s primary host community,  were awarded the Overseas Post Graduate Scholarships at a ceremony  in Port Harcourt.

    The event was attended by the beneficiaries, their families and friends, as well as representation from the Rivers State Government and NLNG.

    This batch of the PostGraduate Scholarships beneficiaries brings to 48, the  number of such awards since the commencement of the scheme in 2013.

    The beneficiaries from all over the country, who emerged via a rigorous qualification involving more than 2,000 applicants, shall be pursuing further education in specialty areas in top universities in the United Kingdom.

    External Relations of Nigeria LNG Limited General Manager, Dr Kudo Eresia-Eke said: “The goal of the Nigeria LNG PostGraduate Scholarship Scheme is to provide support for the development of competent professionals who will bridge the specialists’manpower gap in the country, especially in high profile fields of Engineering, Geosciences, Environmental Studies, Management Sciences, Information Technology, Law and Medicine at Masters Level only.”

  • NLNG awards 10 overseas PG scholarships

    NLNG awards 10 overseas PG scholarships

    Nigeria LNG Limited has awarded 3,053 scholarships to Nigerian students.

    The latest set of 10 beneficiaries – among whom is a visually impaired female Law Graduate from Bonny Island, NLNG’s primary host community, – were awarded the Overseas Post Graduate Scholarships at a ceremony hosted recently in Port Harcourt.

    The event was attended by the beneficiaries, their families and friends, as well as representation from the Rivers State Government and NLNG.

    This batch of the Post Graduate Scholarships beneficiaries brings to 48, the total number of such awards since the commencement of the scheme in 2013.

    The beneficiaries from all over the country, who emerged via a rigorous qualification exercise involving more than 2,000 applicants, shall be pursuing further education in specialty areas in top universities in the United Kingdom.

    Speaking at the occasion, the General Manager, External Relations of Nigeria LNG Limited, Dr Kudo Eresia-Eke said, “The goal of the Nigeria LNG Post Graduate Scholarship Scheme is to provide support for the development of competent professionals who will bridge the specialists’ manpower gap in the country, especially in high profile fields of Engineering, Geosciences, Environmental Studies, Management Sciences, Information Technology, Law and Medicine at Masters Level only.”

    The 2016 award will cost the company over N200 million to cover tuition, living expenses accommodation and travels for the beneficiaries.

    “The overseas scholarship scheme is another effort by Nigeria LNG Limited to consolidate on its human capital development aspirations, in a bid to trigger the necessary indices required for the growth of Nigeria’s economy besides the current state of dependence on oil and gas.” said Kudo Eresia-Eke, General Manager, External Relations.

    “When most companies are winding down their operations and reducing production costs; including laying off workers and abandoning all Corporate Social Responsibility initiatives in order to survive the recession, NLNG is still keeping faith with its programmes, particularly, the aspect that touch on human capital development”, he added.

    Beneficiaries of the 2016 scheme include Miss. Ibiere Helen Jumbo, a Law Graduate who is going to study Energy & Environmental Law with Professional Skills at the University of Aberdeen UK; Miss Zainab Diana Titus, awarded to study Petroleum Engineering also at the University of Aberdeen; Ihuoma Mamma Onwusor proceeds to study Public Health at the University of Bradford in the UK; Miss Ihuoma Gift Amadi will be studying Medical Science with specialisation in Human Nutrition at Glasgow University, and Mr Jonathan Olanrewaju Aina who was awarded to study Digital Communications at the University Of Leeds.

    Other beneficiaries are Miss Tamunoibim Elaine Anidima awarded to study International Health at the University Of Leeds; Miss Mvena Jennifer Chubu is going to study Sustainable Energy Systems at the University Of Leeds; Miss Bisa Tuwonimi Tuonims was awarded to study Human Resource Management at the Glasgow Caledonian University; Miss Hafsat Muhammed Kaugama who was awarded to study Information Systems at Middlesex University; and Miss Loveline Chizobam Owoh who declined the award offer to study Oil and Gas Management at Coventry University for personal reasons.

  • Navy opens school hostel built by NLNG

    The Nigerian Navy Secondary School, Akpabuyo, Calabar has been opened.

    It was built by LNG Limited (NLNG) as part of the company’s contribution to the development of education.

    The 320-capacity boys hostel, taken over by NLNG for completion last year at the cost of N45 million, was inaugurated by the Chief of Naval Staff, Vice Admiral Ibok-Ete Ekwe Ibas.

    Vice Admiral Ibas said: ‘’Our officers and the students thank NLNG for this kind gesture. I want to acknowledge that NLNG has been a great partner to the Navy in ensuring the provision of security in the maritime sector. This gesture further strengthens that partnership because there is no way the Navy and, indeed, the Federal Government can provide these infrastructure. Partners that care and think about Nigeria, especially our children, such as NLNG, deserve our commendation. The Navy will continue to appreciate NLNG’s contributions towards capacity building and assures you that this building will be utilised to create positive impact on students of this school.’’

    The General Manager, External Relations at NLNG, Kudo Eresia-Eke, said NLNG through this and other corporate social responsibility CSR) initiatives across the country has demonstrated its commitment to the advancement of education, which is the bedrock of any sustainable development in the society.

  • NLNG to raise $15b for Train 7

    NLNG to raise $15b for Train 7

    Nigeria Liquefied Natural Gas Limited (NLNG) plans to raise $15 billion from the International Capital Market to fund its Train 7 project, its Managing Director Tony Attah, has said.

    The Train 7 investment is capable of generating 18,000 jobs, he added.

    Attah told the Senate to approve the plan when on Tuesday, he received members of the Senate Committee on Gas led by Senator Bassey Albert Akpan paid an oversight visit to the NLNG facility in Bonny, Rivers State.

    Attah said: “NLNG needs all the necessary support to be able to go to the market to raise 15 billion dollars for Train 7 investment which is capable of generating 18,000 jobs. This will enable Nigeria resolve most of the youth restiveness in the country; help the company to remain a global player in the natural gas market, and to help build a better Nigeria. We believe we can achieve all these with your help.”

    He assured that Nigeria had sufficient proven and non -proven gas resources to the extent that the country was referred to in a global conference, as “that gas country that has some oil”, whereas the country actually classifies its economic strength in terms of oil and not gas, adding that proven and estimated gas reserves at 187 and 600 trillion cubic feet (TCF), are more than sufficient to serve domestic and commercial needs of the country.

    He also pointed out that Nigeria LNG had helped to reduce gas flaring from 65 per cent at the commencement of its operations to about 20 per cent today, removing the country from the top of the list of erring nations.

    Attah said Nigeria LNG is faced with severe challenges, including the operations of multiple regulatory agencies, pipe line security issues, with 19 recorded pipeline disruptions this year alone as example.

    He also alluded to the problem of double taxation, which is capable of impacting the company’s competitiveness and compromising its ability to maintain its position as the world’s 4th global largest gas supplier.

    According to him, the situation if not checked, is capable of leading to a number of unfavourable consequences such as loss of revenue for  the Federal Government, potential loss of jobs and loss of status as inspirational business model and number one indigenous company in the country.

    On LPG supply to the domestic market, the NLNG MD said the structure is threatened, as the system encourages tax-free importation of LPG while NLNG supply is subjected to Value Added Tax (VAT), thereby frustrating the company’s effort to support and grow the local LPG market for which it already sets aside 250,000 metric tonnes annually.

    Akpan promised that his committee would assist to sustain the NLNG legacy and encourage the entrenchment of the NLNG business model in other parts of the Nigerian economy.

  • What judges think of NLNG $100, 000 prize winner, Ibrahim

    What judges think of NLNG $100, 000 prize winner, Ibrahim

    ibrahimThe race has ended for this year’s $100, 000 Nigeria Prize for Literature. The annual competition, which is sponsored by the Nigeria LNG Limited, awards prizes to winning entries in the literary genres of prose fiction, drama, poetry and children’s literature on a rotational basis. This year, the genre in focus was prose fiction.

    The three contenders for this year’s prize were Born on a Tuesday (Elnathan John), Night Dancer (Chika Unigwe) and Season of Crimson Blossoms (Abubakar Adam Ibrahim). All the three shortlisted texts cover a wide range of urgent societal and cultural issues such as the status of women in a patriarchal society, the education of youths, the search for identity, the danger of youth unemployment, corruption, insurgency, religious hypocrisy, migration, broken homes and single parenthood and attendant impact on women and children who are usually at the receiving end of most of these problems.

    According to the prize’s advisory board chairman, Emeritus Prof Ayo Banjo, this year’s edition “attracted a strong field with such high quality that even without this current shortlist of three books there would have still been a winner”. Banjo said the competition, which was open to all Nigerians anywhere in the world, was judged based on the “eligibility of entrants, relevance to goals and aspirations of the Nigerian nation and its peoples – specifically, respect for their traditions and their identity as Africans; publishing, including the quality of the language is important, and errors of style and grammar were considered major blemishes.”

    This year’s race for the prize came to an end on Wednesday, October 12, when Abubakar Adam Ibrahim was announced winner for this year’s prize at an international press conference in Lagos. After a nine-month long process of adjudication, Ibrahim’s novel, Season of Crimson Blossoms, emerged tops from among 172 other entries received for the competition.

    The novel is his debut. It was published in 2015 by Parrésia Publishers in Nigeria and by Cassava Republic Press in the UK (2016).   The decision on the winning entry of The Nigeria Prize for Literature was reached by a panel of judges, led by Prof Dan Izevbaye, a well-respected literary critic and professor of Literature in English; Prof Asabe Usman Kabir, professor of Oral and African Literatures at Usmanu Danfodiyo University, Sokoto and Prof Isidore Diala, first winner of the Nigeria Prize for Literary Criticism and professor of African literature in the Department of English, Imo State University, Owerri, and an international consultant, Prof Kojo Senanu of the University of Legion.

    Commenting on the efforts of the writer, the judges said: “Abubakar Adam Ibrahim’s Season of Crimson Blossoms is a very skillful and sympathetic narrative handling of a most psychologically and emotionally painful between an aging widow, who seeks release from her culturally imposed sexual repression, and a young outcast leader of a group of “weed” – i.e. hard drug – dealers who are ready thugs for politicians.

    “In the background as immediately cause of the widow’s troubles, is the violent history of ethnic hatred and conflicts in Jos, placed within the larger context of contemporary Nigerian history with its complex and sometimes violent intertwining of politics, religion and culture. The novel moves from its evocative and passionate first sentence through a web of anxious moments to a tragic and painful conclusion with hardly a moment of respite.  All through its projects through is main action, the implications of certain key social issues for younger audience – key issues such as early marriage, drug abuse and impact of relationships on human action. It is a novel whose narrow domestic action has wider universal relevance beyond its relevance for its immediate setting.”

    Ibrahim, who is the Arts Editor with the Daily Trust newspaper, holds a Bachelors Degree in Mass Communication from the University of Jos. His debut short story collection, The Whispering Trees was on the long-list for the Etisalat Prize for Literature in 2014. The Whispering Trees was also shortlist for the Caine Prize for African Writing. Ibrahim has won the BBC African Performance Prize and the ANA Plateau/Amatu Braide Prize for Prose. He is a Gabriel Garcia Marquez Fellow (2013), a Civitella Ranieri Fellow (2015 and was included in the Africa39 anthology of the most promising sub-Saharan African writers under the age of 40. He was a mentor on the 2013 Writivism programme and judged the Writivism Short Story Prize in 2014. Ibrahim is the recipient of the 2016 Goethe-Institut and Sylt Foundation African Writer’s Residency Award which he will take up at the Sylt Foundation´s headquarters in 2017.

  • NLNG moves to ease cooking gas supply

    NLNG moves to ease cooking gas supply

    To make the supply of liquefied petroleum gas (LPG) or cooking gas easy, the Nigeria Liquefied Natural Gas Limited (NLNG) and the international auditing firm, KPMG have carried out studies to find out what makes supply of the commodity cumbersome in the country, The Nation has learnt.

    NLNG’s immediate past Managing Director, and Vice President, Safety and Environment (S&E), Shell Upstream International Leadership Team, Babs Omotowa, told The Nation that the studies have been completed and that the gas company was working with the government to remove all bottlenecks to make the commodity readily available in the country.

    Omotowa said the Nigeria LNG carried out study on the issue and hired KPMG last year to carry out its own study, adding that the auditing firm has submitted its findings, which are currently being worked on.

    He said: “At NLNG, we have carried out a study, we also appointed KPMG late last year to carry out a study on what needs to be done to unblock all of these challenges and they have submitted their report. We have also engaged with the Vice President’s Office and we are working with the VP’s office around how the government will take the lead on unblocking all these issues and the private sector will also make an investment.”

    The Liquefied Petroleum Gas Retailers (LPGAR) had accused a cabal that hijacked the LPG business in Nigeria for being responsible for the problems in the LPG subsector.

    LPGAR National Chairman, Mr. Michael Umudu, told The Nation that the LPG business has been hijacked by a cabal. The hijack, according to him, accounted for   the price of the commodity rising from N2.3 million to N4.3 million for 20 tonne, and the cost of filling a 12.5-kilogramme cylinder from N2,500 to N4,000.

    Umudu said: “I am not here to mention names, but we all know that NLNG appointed a selected number of firms to receive and market the product. They should explain to us the factors that brought us to this precarious situation. They (off-takers) should explain to LPG stakeholders, the government and the consumers what happened. We worked together to persuade the government to intervene when the sector was almost dead in 2007.”

    But Omotowa noted that the major problem in LPG supply is infrastructure deficit. “I think the challenge in LPG is one around infrastructure. We need as a country to build more receiving terminals. The only two terminals we have in Lagos are not enough. We have to build more terminals in Port Harcourt and Calabar. We have to invest in transportation of LPG from those terminals into the country either by rail or by trucks. We have to ensure as a country that we have enough distribution centres across the country. So, there is quite a lot of infrastructure work that needs to be done.

    “At NLNG, we are not aware of any cabal, we do not subscribe to any cabal. We supply to any terminal that is available. We are encouraging any person, who is able to invest in any other terminal to invest so that the product can be made available. We are working with the government both the executive and the legislature on actually how to unblock all the challenges across the entire value chain so that LPG is available not just in Lagos, but in Sokoto, Kano and Kaduna so that the issues around deforestation and people chopping trees can reduce and health and environmental concerns of people in those areas can be further improved.”

  • NLNG: infrastructure deficit inhibiting LPG supply, distribution

    NLNG: infrastructure deficit inhibiting LPG supply, distribution

    • ‘We‘re not aware of cabal in LPG business’

    The Nigeria Liquefied Natural Gas Limited (NLNG) has identified infrastructure deficit, such as lack of receiving terminals, as the main cause of the problems in the supply and distribution of liquefied petroleum gas (LPG) also called cooking gas, across the country.

    Its immediate past Managing Director, and now the Vice President, Safety and Environment (S&E), Shell Upstream International Leadership Team, Babs Omotowa, told The Nation that contrary to speculated causes of the problems that confront LPG supply locally, he said infrastructure is the major factor, adding that when it is addressed,its supply will immensely improve.

    Omotowa who was reacting to question on the alleged hijack of cooking gas business by a cabal, which has been responsible for the high price of the commodity, said the NLNG is not aware of or in support of any cabal. He said the primary objective of the firm was to flood the country with the commodity but lamented that the aspiration is hampered by poor infrastructure as there are only two terminals that receive LPG all located in Lagos.

    According to him, the firm is willing and ready to supply LPG to any terminal, adding that there is plan to build a new LPG terminal in Port Harcourt, Rivers State and when it comes on stream, LPG will be supplied to it.

    He said: “Those who say there are cabals would have to throw more light on who those cabals are. But NLNG supplies to terminals that exist. If a terminal doesn’t exist, we cannot supply to it. Today in Lagos, there are two terminals that can take LPG and we supply to those two terminals. “There are efforts to build terminals in Port Harcourt; when those ones are built, we will supply to them. So those who think they can bring any cabal that should build terminals or have that investment, let them do so that we can supply to them. We have no interest in any cabal or any one. We have been working since 2007 to improve LPG supply in the country when the refineries were unable to supply the product.

    “NLNG has been the only supplier of the product since 2007. It supplies more than 80 per cent of LPG in the country and we do that up till today. I think the challenge in LPG is one around infrastructure. We need as a country to build more receiving terminals. The only two we have in Lagos is not enough. We have to build more terminals in Port Harcourt and Calabar. We have to invest in transportation of LPG from those terminals into the country either by rail or by trucks. We have to ensure as a country that we have enough distribution centres across the country. So there is quite a lot of infrastructure work that needs to be done.

    “At NLNG, we are not aware of any cabal, we do not subscribe to any cabal. We supply to any terminal that is available. We are encouraging any person who is able to invest in any other terminal to invest so that the product can be made available. We are working with the government both the executive and the legislature on actually how to unblock all the challenges across the entire value chain so that LPG is available not just in Lagos but in Sokoto, Kano and Kaduna so that the issues around deforestation and people chopping trees can reduce and health and environmental concerns of people in those areas can be further improved.”

  • NLNG: Time for shift in strategy

    NLNG: Time for shift in strategy

    I recently ran into a group of foreign investors who have been trying all they could to break into Nigeria’s energy market without success so far. Their story is as pathetic as it is shameful for a country that has now grounded itself only to start contemplating selling off its national assets in order to survive a self-inflicted economic meltdown.

    As the story goes, these investors have been working to create a business that will enhance Nigeria’s position in the energy market and which should result in greater revenue coming to Nigeria for the products it sells. They have focused their efforts on two of the energy sector’s markets – Natural Gas, primarily Liquefied Natural Gas, LNG, and crude oil. They had chosen to focus on these markets because, according to them, Nigeria is already active in them.  For the time being, they are avoiding the refined energy products as Nigeria does not currently participate in that business.

    To date, what they have discovered in LNG and perhaps, to a lesser extent, in crude oil, is that Nigeria has been selling its output solely to middlemen/off-taker companies and not directly to end-user customers. The challenge in this to the investors is to convince the decision makers who control and can influence the Nigerian energy company executives, to change its business model from one that is selling primarily through middlemen and off-takers, to one that sells directly to end-user customers.  To achieve this, they decided to approach NLNG with a customer that requires the LNG for its business.

    The company they presented is an end-user customer requiring LNG for conducting its business. The company is a public company, listed on the Hong Kong Stock Exchange, and there is ample information available for the NLNG people to review and approve them as a customer. The company, the largest shareholder in Chinese energy outfit, Beijing Gas, with 40% ownership, is the largest authorised importer of gas into China. Its second largest shareholder remains either the wealthiest or second wealthiest family in Hong Kong. Besides, the company has its own LNG port receiving facility. With the investment by Beijing Gas, the company has access to Beijing Gas’s receiving port facilities. I believe there are three, thereby increasing its ability to purchase and receive product.

    The company received a cargo of Nigerian LNG in September/October 2015, purchased and delivered through a middleman/off-taker company. That is not the actual goal of the company. The company is interested in creating a true business relationship with NLNG starting with a spot cargo of 60,000 metric tons for delivery in October and has given a forecast need of 60,000 metric tons monthly for a long-term contract beginning in January 2017 and continuing for the length of the agreement to be entered with NLNG for a number of years – 5 to 15 years if possible.

    The company’s second consideration in their desire to introduce their company to NLNG and establish them as a customer, receiving not just this first cargo, but the monthly shipments under the hoped-for long-term contract is that the group with whom they work is a consortium interested in financing the Seventh Production Train Project which NLNG is interested in constructing.  This project is currently estimated to have a cost of $6.5 to $7 Billion (U.S. Dollars). This project would greatly expand Nigeria’s LNG supply potential with the resultant increased revenue that would come to Nigeria from the sale of its product.

    A third reason for choosing the company as the investors’ initial customer to present to Nigeria for direct purchase is the company’s ownership by Beijing Gas.  Beijing Gas is the largest importer of LNG to China.  If it is proved that Nigeria is a reliable supply partner, it may be possible to sell more fuel to Beijing Gas or use the company and the investors as a reference to win other Chinese customers.

    Furthermore, once the investors have worked out the direct supply logistics, they can use this as a reference as they approach other potential customers in other parts of the world where pricing may be higher, thus giving Nigeria a greater revenue yield. Right now, the investors are working on developing a potential customer in the Caribbean.  This customer purchases both LNG and LPG, products that NLNG sells.  This customer has indicated monthly supply needs a bit larger than the earlier company. This customer is also a public company that has a long history of conducting business and is a Shell distributor, hence it has demonstrable strong financial capability.

    You may think that all of these should be important to Nigeria.  It certainly is to the investors!  But it may interest Nigerians to know   that while the investors are very enthusiastic about sealing a deal with NLNG, the NLNG officials have been foot-dragging and very lukewarm about going into business with the investors. And what is the reason? Some vested interests are erecting artificial barriers and obstacles in the way of progress which would have seen the realization of this lofty dream.

    The world LNG market is undergoing great change.  Several new suppliers are entering the market – the United States and Australia are the first two. Australia undertook the simultaneous development of eight export terminal facilities which have come on to the market only recently. The U.S. has several export terminal facilities under development, the first of which has just opened and received export permit approval.

    What these new supply sources mean is a large amount of new product coming to market which is having the effect of lowering prices.  For example, the U.S. domestic price for LNG is approximately $2.65 per MMBTU today. The glut of product availability has driven the world price down from $12 to $14 per MMBTU from only two to three years ago to current spot prices that are 60 per cent to 70 per cent lower. These developments have caused a change in world markets.

    In the past, most LNG was sold under long-term contract with only about 20 percent of the LNG market being sold via spot cargos.  The increase in supply has changed this model and most likely has, and will continue to, put pressure on spot prices and suppliers.  One has to wonder if the off-taker/middlemen with whom Nigeria has contracted to sell its product will continue to take product if they are unable to resell it at the traditional profit margins to which they are accustomed.

    For all of these reasons, I believe it may be in Nigeria’s best interest to change its go-to-market approach and move towards direct selling and relationships with true end-user customers.  That is why I have brought forward this argument.  It is good if the authorities of the NLNG can make this business strategy shift.

    Nigeria has the opportunity to do something that can improve the country’s position in the supply of energy. Doing so should enhance the amount of money Nigeria receives for its products as it can charge a direct customer more than it can charge a middleman/off-taker who must purchase it at a price low enough to allow for resale at a profit to the same end-user customers that are now struggling to enter the Nigerian market.

    The market should be allowed to establish the price rather than middlemen and off-takers dictating to Nigeria.  Bringing customers interested in long-term supply arrangements with Nigeria will give Nigeria stability in the forecast of its revenue from this energy product, allowing the country some greater understanding of its monetary generation.

    Also of great importance is getting Nigerian decision makers to change their go-to-market strategy because of the impact this will have on the development of the LNG business.