Enabling the Nigerian economy - LNG
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Transcript of Enabling the Nigerian economy - LNG
Nigeria LNG Limited
Nigeria Oil & Gas Conference and Exhibition
ByBabs Omotowa
Managing Director/CEO
Nigeria Oil & Gas Conference and Exhibition
Enabling Nigerian Economy - LNG
ByBabs Omotowa
Managing Director/CEO February 20 -23 2012
Nigeria LNG Limited
Global energy use - 30% growth 2030.
Gas will be 31% of this growth.
LNG will be 25% of Gas, from 19%.
Global gas demand robust mid-term
Asia-Pacific market robust
Old (Japan, Korea, etc)
New (China, India, Kuwait, etc)
Europe demand strong till 2020
Global LNG growing 4.5% per annum
Diversification of gas supply sources
Monetises stranded gas and balance portfolio.
Global Gas
Nigeria LNG Limited
Nigeria LNG
Nigeria LNG 6-Trains
18,000 construction jobs at peak
$9 b dividend to country to date ($2.5b invested)
4.4% contribution to GDP
Monetized 67bcf otherwise ‘flared’ gas
Revitalized shipping industry
Bonny – power, water, etc
Nigeria LNG Limited
Nigeria Gas 189tcf proven reserves.
600tcf unproven reserves
Usage less than 50%
Domestic Gas
Dedicated- Power – 13.85 tcf
Dedicated - Industries – 2.45 tcf
Export Gas
Contracted Exports – 27.1 tcf
Other Ded. & committed Exports – 44.8 tcf
Challenges
Infrastructure
Fiscals and Financing (FDI)
Project Execution
Nigeria LNG Limited
Nigeria LNG Projects - ComplementaryGas Proven Reserves – adequate for power and LNG
Australia (110tcf) 10 FID, 81mtpa, 260,000MW power
Financing
Option – NLNG balance sheet, project finance
Capacity creation
Grow local contractors
Train 7
10,000 project jobs by 2015, particularly ND
$8b FDI attraction, additional dividend
Additional Flares out opportunity
Zero cash from Government
Nigeria LNG Limited
Window of Opportunity – Time to Act! Nigeria market share - 10% in 2008, now 8%, will be 5% by 2017
US - former importer; export 2016
HH (mmbtu) $15 2005 now <$3
Qatar - mega trains
77mtpa by 2011
Japan market.
Australia (110tcf) - mega projects
10 LNG projects post FID
20 trains - 81mtpa, $215b FDI
Mozambique
FID 2013 - 2-trains for recent find
Competition is between Nigeria and the other countries NOT between Nigeria projects!
Nigeria LNG Limited
Thank you for your attention