Why Govt Is Unable To Finance LNG Project

Why Govt Is Unable To Finance LNG Project

Getting foreign direct investment (FDI) for Liquefied Natural Gas (LNG) trains is a problem confronting the gas sector. Trains are vehicles for processing and exporting gas to offshor markets. A former Managing Director, Nigerian Liquefied and Natural Gas (NLNG), Mr. Godswill Ihetu, says the government needs billions of dollars to do this. Ihetu, also Energy Resources Limited Chief Executive Officer, in this interview with AKINOLA AJIBADE, speaks on why Brass LNG and Olokola LNG have failed to take-off, despite the government’s avowed commitment to the two projects, collocation of oil and gas pipelines, shortage of gas, problems in the Liquefied Petroleum Gas (LPG) sub-sector, power problems and other sundry issues.

What is the global market share of Nigerian gas?

The country is controlling 10 per cent of the global gas market. The market size is growing, a development, which would encourage economic growth in the country. The more Nigerian gas exported the better for the country. Just as crude oil and its derivatives, such as Petroleum Motoring Spirit (PMS), Diesel, and Kerosene, are sold to customers from different segments of the economy so also is natural gas compressed for the use of automobiles, liquefied for domestic cooking, transfered into turbines for electricity generation and sent as exports to markets in Asia and other parts of the world. The gas that is produced in the Niger Delta region is piped all the way to Lagos for use in Omotoso Power Plant; Papalanto Power Plant; Geregu Power Plant, Ugbelli and other plants. While many of the power plants are government-owned, others are not. For instance, the Federal Government owns the Nigerian Gas Company (NGC), which sells gas to different companies. Also, we have Escravos gas pipeline, which is serving as a major artery into Lagos

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