NLNG Seeks Solutions To Improve Performance Of Gas Facilities In Bonny Island

NEW ORLEANS: The Nigerian Liquified Natural Gas Ltd. (NLNG) has begun shopping for companies with solutions that will enable it to achieve top-quota operation for the LNG Liquefaction Facilities in Bonny Island, Rivers State.

The NLNG has also engaged gas supply companies and there are plans to bring onboard new gas wells in other to solve the feed gas challenges limiting the performance of the NLNG Train 6 and earlier trains.

A senior official of the NLNG revealed these developments exclusively to THE WHISTLER at the sidelines of the strategic session of the 20th anniversary of the Americas Energy Summit held in New Orleans, US.

The NLNG official said they have approached credible companies at the summit that have indicated an interest in working with the NLNG to ensure the top performance of the different LNG trains.

The Managing Director of the Worldwide LNG, Pat Roberts had told THE WHISTLER that the NLNG Train 6 and other trains are underperforming due to the feed gas problems.

The senior official who does not want to be mentioned said that feed gas is a problem. He said the market is becoming saturated, adding that buyers are seeking long-term contracts with LNG companies that can supply the volumes.

According to him, NLNG is making efforts to solve the feed gas issues in order to negotiate long term contracts so that NLNG will not struggle with price fluctuations and the uncertainties of negating LNG at the spot market.

The official said, “NLNG is here to scout for the right companies that will help us reach top-quota operation. We have performance indicators. For example, no leak. So, how do we sustain a performance that means no leak, no harm to people, and top-quota operations such that we do not hurt the environment? We want to keep the plant running at a reliability level to deliver gas supply.

“On the feed gas issues, it is known that we are not getting all the feed gas that we want. It is an issue with the upstream suppliers. We don’t produce the gas that is being converted to energy. It is being sold to us. There are several projects to bring on new gas wells.”

The US LNG is planning to saturate the global LNG market with its product. In 2022, three US LNG projects reached a final investment decision last year, totalling 25.3 million tons of capacity.

About 8.4 million mt/year of new capacity could be added by the end of 2024 adding to the 84 million mt/year of liquefaction capacity of the US LNG.

The official said, “The US is coming into the global market. If they are increasing, someone will give and someone will take. It is just the balance of the market.

“If you leave a space in the market, some other person is going to take it. So, they will disrupt the market and prices may go down. Apparently, some may lose market share.”