A 122,000 cu m cargo of LNG being transported to France from Nigeria represents a major milestone, given the troubled history of Nigeria's petroleum industry (see story, p. 30).
Start-up of the liquefaction plant at Bonny Island was delayed because the plant was overrun by protesters (OGJ, Oct. 4, 1999, Newsletter). But this was a mere hiccup compared with earlier problems: The project got started only when investors opened an escrow account to prevent their money being skimmed off by a former government (OGJ, Jan. 17, 1994, Newsletter).
Announcing the departure of the first cargo from the Nigeria LNG Ltd. plant on Oct. 11, Lew Watts, director for Africa and Latin America of Shell Gas BV, which has a 25.6% interest in NLNG and is effectively operator of the project, gave an idea of just how significant this milestone is.
Long gestation
"The idea of exporting liquefied gas from Nigeria began in the 1960s," said Watts, "but it was only in late 1995 that the decision to go ahead with the project was finally taken. In less than 4 years, the first stage of one of Africa's largest industrial projects has been completed on time and on budget.
"We know that the situation in Bonny has been difficult recently. But we hope and believe that NLNG and the people of Bonny are now able to ensure that NLNG is a success for the long-term benefit of all. This is a major achievement for Nigeria and its people."
Nigeria's current leader, President Olusegun Obasanjo, is attempting to unravel the web of corruption spun by earlier regimes. He helped provide a solution to the dispute at Bonny, which enabled the plant to start up. But it appears there is plenty of discontent among Nigeria's citizens to interrupt the progress of other projects.
For example, the construction of the Soku gas plant in the Niger Delta by Shell was stalled by the kidnapping of two employees of the project's main contractor, Japan's JGC Corp.
The Soku plant is 90% completed and is being built to provide 500 MMcfd of gas to NLNG. The kidnappers demanded a start to social schemes on which they said nothing had been done so far.
Pipeline delays
Further obstacles also face the West African Gas Pipeline project, for which Nigerian National Petroleum Corp., Shell, and Chevron Corp. signed a memorandum of understanding only recently (OGJ, Oct. 11, 1999, p. 38).
The pipeline is planned by a consortium comprising NNPC, Shell, Chevron, Ghana National Petroleum Corp., Societé Benin de Gaz SA, and Societé Togo de Gaz.
Shell and Chevron expect to supply most of the pipeline's gas from Nigerian oil fields, where much gas is still flared, with Togo, Benin, and particularly Ghana being the target markets.
Ghana is anticipated to take more than 70% of the 120 MMcfd throughput of the pipeline at its peak in 2010. But a key contract to supply gas to Ghana's Ashanti gold field has collapsed, undermining the project.
Now Nigeria wants the pipeline consortium to take over marketing of the gas from the individual countries. This would speed negotiations and cut out political intrigue, conditions Nigeria showed were essential for the success of NLNG.
