Connect with us

Energy

NLNG reportedly stops gas shipments due to vandalism, declares additional force majeure

Published

on

Nigeria Liquefied Natural Gas (NLNG) Limited is said to have cancelled several liquefied natural gas shipments after production was disrupted due to vandalism of pipelines by oil thieves.

This is coming barely three months after NLNG declared force majeure on its 22.2 million ton per year Bonny LNG export facility due to widespread flooding that disrupted supply.

Two people with direct knowledge of the matter anonymously confirmed that the multinational gas company declared additional force majeure on LNG cargoes for export and cancelled the loading of at least two cargoes scheduled for January delivery from the Bonny Island facility.

In an email seen by newsmen, Nigeria LNG Limited confirmed the fresh force majeure but insisted that the Bonny Island plant is still active.

Part of the statement seen by newsmen said, “Nigeria LNG Limited confirms that operations at its plant on Bonny Island are still active despite a Force Majeure declared in October 2022 and feedgas supply challenges. The plant continues to produce LNG and LPG commensurate to the feed gas it receives from its upstream gas suppliers.

“In addition to ensuring steady operation, NLNG remains committed to its culture of transparency and maintains consistent communication with key stakeholders on developments in the upstream sector. The company is closely monitoring the resolution of supply challenges by all relevant parties.”

The development could further negatively affect Nigeria’s ability to close the gas supply gap in Europe and others, which has been affected by the Russia-Ukraine war.

Nigeria has been a key LNG supplier to Europe over the last year, helping to partially plug the gap created by the loss of Russian supply.

According to data, gas imports from Nigeria constitutes about seven per cent of Europe’s LNG supply in 2022.

These sources have also said that more gas shipments for February could be scrapped.

In addition to the flood challenges experienced last year, the gas output in the country has also been disrupted by serious security challenges and feed gas problems.

Recall that earlier in October 2022, the NLNG declared force majeure on its 22.2 million ton per year Bonny LNG export facility due to widespread flooding that disrupted supply thereby worsening Nigeria’s gas shortage challenges and revenue crisis.

The development is coming as Nigeria had to battle its worst floods in about a decade, with no fewer than 500 people reported to have been killed and billions of naira worth of properties damaged.

Earlier in August 2022, the NLNG said it had lost almost $7 billion in revenue so far in 2022 due to a shortage of gas supply.

The revenue loss was attributed to the increasing security challenge which has hit the oil and gas companies across the country and has negatively been impacting the production and revenues of the NLNG.

Energy

Price of 5kg cooking gas increased by 42.97% in one year — NBS

Published

on

The average retail price to refill a 5kg cylinder of Liquefied Petroleum Gas (Cooking Gas) rose by 42.97 percent, from N4,610.48 in March 2023 to N6,591.62 in March 2024, according to the National Bureau of Statistics (NBS).

Comparatively, the price saw a monthly increase of 7.10 percent from N6,154.50 in February 2024.

A state-level analysis shows that Kano had the highest average price at N7,609.00, followed by Ogun with N7,363.64, and Akwa Ibom at N7,162.50.

In contrast, the lowest price was in Adamawa where the price was N5,312.50, with Taraba and Zamfara following at N5,375.00 and N5,550.00, respectively.

Regionally, the South-South had the highest average price at N7,003.08, followed by the South-West where it sold at N6,723.22, and the North-East which had the lowest at N6,221.30.

Additionally, the average price to refill a 12.5kg cylinder of LPG increased by 5.77% month-on-month from N15,060.38 in February 2024 to N15,929.04 in March 2024, and by 55.22 percent year-on-year from N10,262.56 in March 2023.

State-level data indicate Sokoto as having the highest average price at N17,833.33, followed by Osun at N17,588.46, and Anambra at N17,417.65. The lowest prices were recorded in Katsina (N12,400.00), Kebbi (N13,137.50), and Bauchi (N14,484.25).

By zone, the South-South again recorded the highest average price at N16,859.85, with the South-East close behind at N16,734.87, while the North-East recorded the lowest at N14,943.48.

Continue Reading

Energy

NNPC Ltd, First E&P commence 20,000bpd local production at OML 85

Published

on

The Nigerian National Petroleum Company Limited (NNPC Ltd.) and its Joint Venture partner in OML 85, First Exploration and Petroleum Development Company Limited (First E&P), have commenced oil production from the asset, also known as Madu Field.

Production from the field which is located in shallow waters offshore Bayelsa State and operated by First E&P is expected to be at an average of 20,000 barrels per day.

According to a statement from Olufemi Soneye, Chief Corporate Communications Officer NNPC Ltd, Abuja, the achievement is a testament to the commitment of the President Bola Tinubu administration to optimise production from the nation’s oil and gas assets through the provision of an enabling environment for existing and prospective investors.

Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Mr. Mele Kyari, described the commencement of oil production at the Madu Field as a significant milestone that will contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.

Kyari, who commended stakeholders for their support, also explained that the addition of 20,000 barrels per day by an indigenous oil player signals the commitment of stakeholders to achieving economic development for Nigeria.

It would be recalled that the Final Investment Decision (FID) on the development of the Madu Field and a sister field, Anyala, was taken by the NNPC Ltd./First E&P JV in 2018.

Production from the Madu Field will be processed at the JV’s Abigail-Joseph Floating Production Storage and Offloading (FPSO) Unit, which has a crude oil storage capacity of up to 800,000 bbls.

Continue Reading

Energy

Mele Kyari bags Energy Times’ GCEO of the Year award

Published

on

The Group Chief Executive Officer, NNPC Ltd, Mr. Mele Kyari has been honoured with the Energy Times’ GCEO of the Year Award in recognition of his commitment to accountability, transparency, and performance excellence.

Chief Corporate Communications Officer of the Company, Mr. Olufemi Soneye received the award on behalf of the NNPC boss, in a ceremony held at the Eko Hotel & Suites in Lagos on Friday.

According to the Governing Council of Energy Times Award Committee, Kyari’s hardwork has played a significant role in the company’s success and has contributed significantly to the growth of the energy sector in Nigeria.

Speaking at the occasion, Kyari said the NNPC Ltd, which has been on transition since the passage of the Petroleum Industry Act (PIA) has been championing the push to transform Nigeria into a gas-powered nation in keeping with its enormous natural endowment with over 209 trillion cubic feet proven natural gas reserves.

“We are building gas infrastructure such as the OB-3 Gas Pipeline, AKK Gas Pipeline to deepen the use of gas in the domestic market, while we are also promoting the West Africa Gas Pipeline and the Nigeria-Morocco Gas Pipeline, as well as the Train 7 of the NLNG and number of Floating LNG Projects to deliver gas the global market,” Kyari stated.

The GCEO further noted that the NNPC Ltd is also aggressively expanding its portfolio in the power sector to make the company a truly rounded energy company.

“Apart from our stakes in a number of Independent Power Plants such as Afam VI, Okpai Phases 1 and 2 with a combined installed capacity of 1,420MW, there are plans to build three new power plants in the AKK Pipeline corridor Abuja, Kaduna, and Kano. The ground-breaking ceremony of the 1,350MW wholly owned Gwagwalada Power Plant was performed by President Bola Ahmed Tinubu in August last year,” he added.

Kyari, who dedicated the award to all NNPC Ltd staff, thanked the Energy Times editorial board for finding him worthy of the recognition, adding that it would spur him to work harder towards achieving more for both the NNPC Ltd and the Nigerian Oil & Gas Industry.

 

Continue Reading

Trending