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NLNG’s Bonny Plant Still In Operation

Nigeria LNG Limited confirms that operations at its plant on Bonny Island are still active despite a Force Majeure declared in October 2022 and feed gas supply challenges.

The plant continues to produce LNG and LPG commensurate to the feed gas it receives from its upstream gas suppliers.

Andy Odeh, General Manager, External Relations and Sustainable Development

In statement stated that 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 Nigerian Liquefied Natural Gas Limited (NLNG) has recorded 37.5 per cent year-to-date gas delivery gap, translating to about 1.3 billion cubic feet of gas (bcf) deficit, with negative implications on both the company’s export and domestic gas delivery obligations as well as revenues.
The Deputy Managing Director of NLNG, Olalekan Ogunleye, disclosed this during a panel session at the just-concluded Practical Nigerian Content Forum (PNC) in Uyo, Akwa Ibom State, where he also lamented that Nigeria missed a lot of opportunities across the upstream, midstream and downstream gas value chains.

Ogunleye said at the moment, the NLNG was only able to deliver 62.5 per cent of the 3.5bcf gas requirement in its six-trained 22 million tons per annum (mtpa) processing plant in Bonny Island, Rivers State.

In August, the NLNG had suffered $7 billion year-to-date revenue loss due to inadequate gas supply and under-capacity production at the company’s processing plant, a situation caused by the shutdown of major oil and gas pipelines, particularly the Trans-Niger Pipeline (TNP).
The company’s General Manager, Production, Adeleye Falade, had while speaking at an energy conference in Lagos, said the company’s production was trending at 99.4 per cent year-to-date availability while utilisation hovered around 68 per cent.
He had explained to the audience that the data between the 99.4 per cent availability and the 68 per cent utilisation at the time was equivalent to almost $7 billion revenue.

However, with the 62.5 per cent year-to-date available gas delivery disclosed by the firm’s deputy managing director, NLNG’s gas delivery has now fallen by 5.5 per cent from the 68 per cent reported in August.
“So for us as Nigeria LNG, it’s not just us, we see a lot of missed opportunities. Our train 1 to 6 gas requirement is about 3.5bcf of gas. Year-to-date, we have a gas delivery gap of about 37.5 per cent, only 62.5 per cent is our gas supply,” Ogunleye said.

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