Nigeria studies another LNG plant
Nigeria has begun plans to set up another liquefied natural gas (LNG) plant to rival the existing Nigeria LNG complex. Multinational oil companies, including ExxonMobil Corp., Conoco Inc., Chevron Corp., and Texaco Inc. will conduct a feasibility study. ExxonMobil will lead the study team.
By an OGJ Online Correspondent
ABUJA, Feb. 21�Nigeria has begun plans to set up another liquefied natural gas (LNG) plant to rival the existing Nigeria LNG complex.
The plant would be located west of the Niger Delta, Presidential Adviser on Petroleum and Energy Rilwanu Lukman said at the signing of a memorandum of understanding for a feasibility study on the plant.
The memorandum was signed by multinational oil companies including ExxonMobil Corp., Conoco Inc., Chevron Corp., and Texaco Inc. ExxonMobil was chosen to lead the study team, said Lukman.
"The federal government and all parties involved expect the study to be completed within 12 months," Lukman said.
The existing LNG plant is on Bonny Island, east of the Niger Delta.
Lukman said the study would identify and evaluate gas requirements, sources, quality, and availability for the project. They would also examine location, design, and scope of the LNG plant; potential markets; transportation requirements; LNG loading and receiving facilities; project economics; and sensitivities.
The LNG effort is part of the government's determination to end gas flaring by 2008 and monetize large volumes of associated and non-associated gas.
The government is also considering large volume commercialization schemes, such as liquefied petroleum gas (LPG) production and marketing, and gas-to-liquids projects.
Nigeria has reserves of 182 tcf, or 25 billion boe. Lukman said that is nearly as much as the estimated proven oil reserves of 27 billion bbl.
He said domestic demand is less than 500 MMcfd and would grow to 1.8 bcfd by 2010 and 4.8 bcfd by 2020.