SHELL PLANS LARGER POLE IN NIGERIAN LNG

Shell International Gas Ltd. (SIGL) has confirmed it will take a larger management role when the delayed Nigeria LNG Ltd. is relaunched soon. This is the latest move in 25 years of plans to develop a $4.5 billion LNG project with an export terminal at Bonny Island. The project ran out of cash again earlier this year, while company board changes and technology switches also helped delay progress (OGJ, Apr. 19, p. 36).

Dec. 20, 1993

2 min read

Shell International Gas Ltd. (SIGL) has confirmed it will take a larger management role when the delayed Nigeria LNG Ltd. is relaunched soon.

This is the latest move in 25 years of plans to develop a $4.5 billion LNG project with an export terminal at Bonny Island. The project ran out of cash again earlier this year, while company board changes and technology switches also helped delay progress (OGJ, Apr. 19, p. 36).

A Nigeria LNG spokesman recently said state owned Nigeria National Petroleum Corp. (NNPC) will reduce its stake in the project in favor of foreign private participants (OGJ, Dec. 6, p. 31).

Although the new Nigeria LNG has not been officially relaunched, SIGL Director David Pearce confirmed the new interest holders will be NNPC 49%, SIGL 24%, Ste. Nationale Elf Aquitaine 15%, Agip SpA 10%, and World Bank subsidiary International Finance Corp. 2%.

Pearce told a Vienna conference a significant amount of project capital will be placed in an escrow account to establish financial confidence among potential lenders.

Shell has said new bids for project contracts will need to be sought in 1994. This means the project cannot be completed before late 1999.