NIGERIA LNG: OVERCOMING TECHNICAL AND COMMERCIAL CHALLENGES TO BECOME ONE OF THE WORLD’S MAJOR EXPORTERS OF LNG

摘要

The very first LNG project proposed in Nigeria faltered in the early 1960’s.rnSubsequent efforts to build a LNG plant in Nigeria were unsuccessful until Nigeria LNG Limited (NLNG) was formed in May 1989. The NLNG shareholders decided to construct the base project, comprising two LNG trains, on Bonny Island in December 1995. The first LNG cargo was loaded in October 1999. Subsequently, a third LNG train has been operational and the EPC contract awarded for two larger capacity trains 4 and 5 in March 2002. The final investment decision for Train 6 is imminent.rnIt took several years of effort and perseverance to initiate the Nigeria LNG project. However, on completion of the 6th train, NLNG will produce about 22 mtpa of LNG, making it one of the world’s major exporters of LNG. On its journey to becoming a premier dependable LNG supplier, NLNG has faced several unique technical, execution and commercial challenges. These challenges were overcome in an innovative manner and converted to opportunities. This paper addresses the key elements that have contributed to making NLNG a successful project.rnThe following technology related issues are discussed in the paper:rn1. Feed gas changes and contribution to reducing flaring in Nigeriarn2. Choice of cooling medium for the plantrn3. Use of proven though improved technology over different phases of projectrnFrom a commercial standpoint, the following key issues and innovations are addressed:rn4. Integrated nature of the operation of the company in terms of managing operations, marketing and shipping functionsrn5.1 Successful financing by third partiesrn6.1 Commitment to Nigerianisation and local content programs based on professionalism and competencern7.1 Excellent community relationships and development programs