Worries as Nigeria is absent from Int’l list of liquified gas suppliers

Stakeholders in the liquified gas sector have remained worried that Nigeria was not mentioned among countries with good market prospect for their liquified natural gas (LNG) cargo for July and August 2017.

But international gas marketing business is usually carried out months in advance to actual date of supply.

However, the stakeholders said despite the fact that the Nigerian Liquified Natural Gas (NLNG) had found the markets for its earlier-delayed cargo for June 2017 and was looking forward to buyers for subsequent deliveries, its was omitted in the list.

Some of the international companies that have been quoted as having found buyers for their products, included Exxon Mobil, which manages Australia’s Gorgon Liquefaction Plant.

It was said to have sold its June cargo late, but its July supply has equally been sold to a Chinese firm.

Another main player is Jordan’s National Electric Power Company, which paid for Angola’s LNG for an August cargo.

Read also: DMO offers N140bn bond, after CBN mops up N133.24bn in Treasure bills sale

Not left out is the Abu Dhabi Gas Liquefaction Company, which sold its cargo for mid-July to Gunvor, a Cyprus-based global commodity trading company.

Mr. Simon Uvwelli, a gas market expert said the non-inclusion of Nigeria’s name among international firms that have already found buyers for their cargoes portends a negative sign that must be curtailed before it turns into a major revenue yielding crisis on the part of NLNG.

He also noted that in the past weeks, LNG commodity prices have continued to move slightly down in the Asian market as major buyers have yet-to-be disclosed reasons.

For instance, spot prices for August deliveries went down by five cents to $5.40 per million British thermal units (mmBtu), with North Asian buyers, from Taiwan and Japan particularly, staying out of the market within the period under review.

It was also learnt that the only major demand from the Asian region came from South Korean, which covered most of the July-cargo-deliveries for about $5.60 per mmBtu, 20 cents higher than the selling price in Japan and Taiwan .

From Southern Asia, most marketers were focusing attention on India, which is one of the buyers of Nigeria’s commodity.

Indian firms are said to be seeking an August cargo after hearing that the Indian Oil Corp (IOC) purchased an August cargo as low $5 per mmBtu from a Singapore-based dealer recently.

 

RipplesNigeria ….without borders, without fears

Click here to download the Ripples Nigeria App for latest updates

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now