Nigeria’s LNG Output Still Weak
Heavy flooding, upstream gas supply issues and pipeline vandalism have left the six-train Nigeria LNG (NLNG) facility on Bonny Island producing far below capacity since last year, with the trend largely continuing in 2023, a Natural Gas Intelligence (NGI) report has noted.
Liquefied natural gas exports have been “protractedly declining” since the 22 million metric tons/year NLNG declared a force majeure in October 2022 due to flooding, NGI stated, quoting Kpler analyst, Ana Subasic.
“Nigeria’s LNG exports have been lower, but steady since the beginning of this year,” Kpler stated.
Subasic said NLNG, a major Atlantic Basin supplier since 1999 when the first train came online, delivered 1 million tons (Mt) to the global market at a 53 per cent utilisation rate in January.
The situation seemed to be improving, however, as exports bounced back to 1.07 Mt last month, or 63 per cent of its total monthly capacity, after four consecutive months of decline, according to Kpler. The commodity data firm also projects exports to reach 1.22 Mt in March.
Although Nigeria is Africa’s largest LNG exporter, and as Europe looks to replace Russian natural gas with more of the super-chilled, Nigeria has been unable to increase capacity to meet the ramp in global demand.
The country is missing out on opportunities in what the International Energy Agency (IEA) expects to be a tight market until 2026, when new projects come online and begin easing the supply crunch.
Nigeria isn’t alone as output has fallen across Africa, the report said. In Algeria, Angola, Cameroon, Egypt and Equatorial Guinea, utilisation rates have slipped to just 58 per cent of the 71 mmty of liquefaction capacity available, according to the Gas Exporting Countries Forum.
At the continent’s largest plant, NLNG exports have dropped from a high of 21.33 Mt in 2019 to just 14.61 Mt last year, according to Kpler. Nigeria once had a 10 per cent share of the global LNG export market, but by 2021, the country’s market share had fallen to just 6 per cent, the report added.
A “general lack of investment, maintenance, prolonged flooding periods, and more recently pipeline vandalism in Nigeria, has been at the core of Nigeria’s decline in output seen since 2019,” Subasic told NGI.
“Human-imposed sabotage and theft have been affecting the feed gas supply of Nigerian associated gas, directly linked with Nigerian oil production,” it added.
Naira Remains Constant, Exchanges N464.67 to Dollar
Naira remained constant yesterday, exchanging at N464.67 to the dollar at the Investors and Exporters’ window.
The local currency did not change from its value on Monday, while the open indicative rate closed at N464.96 to the dollar yesterday.
An exchange rate of N467 to the dollar was the highest rate recorded within the day’s trading before it settled at N464.67.
The naira sold for as low as N460 to the dollar within the day’s trading.
A total of 186.02 million dollars was traded at the official Investors and Exporters’ window yesterday.
Meanwhile, the Central Bank of Nigeria (CBN) yesterday in Kano carried out sensitisation campaign on the e-Naira at the Aliko Dangote University of Science and Technology (ADUST) Wudil.
The Kano Branch Controller of the bank, Umar Ibrahim-Biu, called on the university community to adopt the new e-wallet system in its payment of tuitions, salaries and other financial transactions.
He explained the need for the university community to migrate to the cashless system was for financial security and efficiency by adopting to the e-Naira initiative.
The controller said that e-Naira was a trail blazer now as it had come to stay and the bank was trying to make sure that everybody was brought on board.
“We’ve been to Universities of Nsuka and Jos and now we are here to also sell the idea of e-Naira wallet to both the students and staff of the institution,” he said
“Our target is where the students can use the facility to pay their tuition fees and other payments through the e-Naira wallet,” he added.
“This will help the students a lot, it’s the safest way of handling your funds. Nobody will steal it, it will eradicate corruption. One does not need to carry huge amount of cash,” he said.
“The VC has accepted it. With e-Naira they can get up to five per cent revert on every payment they make.
“Their money doesn’t go like that they save something out of it. There are a lot of other incentives they can enjoy,” he added.
Earlier, the Vice Chancellor of the university, Prof. Musa Yakasai, gave the assurance that the institution would key into the e-Naira initiative.
Yakasai appreciated the initiative and lauded the Bank for coming to launch the e-Naira initiative in the institution.
He said the students were already e-Naira compliant.
“They are doing a lot of things, some of the academic activities are via e-platforms. So its very easy for students to adopt this e-era.
The students asked some questions regarding the safety of their deposits in the initiative.
“We now understand the e-Naira concept and we are now convinced and we will call on our students and other stakeholders to key into this initiative.”
“It makes it easier for everyone to operate without having to move with a lot of cash,” Yakasai stated. (NAN)
Nigeria, OPEC Members Agree to Cut Oil Production Volumes
Nigeria and other members of the Oganisation of Petroleum Exporting Countries (OPEC) as well as the Non-OPEC members have agreed to cut production volumes to ensure global oil market stability.
The agreement was reached at the 35th Joint Ministerial Monitoring Committee (JMMC) meeting of OPEC held in Vienna, Austria on June 4.
Nigerian delegation was led by Amb.Gabriel Aduda, Permanent Secretary, Ministry of Petroleum Resources, who was also confirmed OPEC Governor for Nigeria at the meeting in Vienna.
OPEC and its allies have agreed to cut global oil production by 1.393 million barrels per day, reducing Nigeria’s oil production quota by 20.7 per cent.
Aduda said Nigeria, Congo and Angola agreed that the highest production volumes of the last Six months (November 2022 – April 2023) be used as the basis for the determination of their 2024 production quota.
“This is subject to a review in November at the second annual meeting of the JMMC.
“However, the current OPEC quota would be maintained till the end of 2023.
“This implies that Nigeria can ramp up its production up to its current quota of 1742 Thousand Barrels Per Day (KB/D) and subsequently be capped at 10 per cent less as its quota for 2024 subject to verification by independent secondary sources,” he said.
Aduda expressed confidence that the security intervention under the leadership of President Bola Tinubu, would enable the restoration of Nigeria’s production to the 1580KB/D crude oil only.
This, he said would be complimented by condensate of about 400KB/D ultimately upping Nigeria’s crude oil and condensate production to about Two Million Barrels per day in 2024. (NAN)
Fintiri Pledges Support for Farmers with Modern Inputs, Techniques in Adamawa
Gov. Ahmadu Fintiri of Adamawa has expressed his administration’s determination to support farmers with modern agricultural inputs and techniques to boost farming activities in the state.
Fintiri said this on Tuesday in Yola at the Nigeria Integrated Agriculture Activity, 2023 Agricultural Inputs Fair, organised by Feed The Future, a United States Government’s Global Hunger and Food Security Initiative.
The programme was being implemented by the International Institute of Tropical Agriculture (IITA) and partners.
It is also part of USAID’s contributions to the economic recovery and support to the vulnerable population disenfranchised in the North-East by insurgency and who were being re-engaged into farming activities.
Fintiri, who was represented by his Deputy, Prof. Kaletapwa Farauta, appreciated the conveners of the programme and their partners.
He also expressed his administration’s readiness to partner with any government and non-governmental organisation that was ready to contribute its quota to the transformation of agriculture and other human endeavours in the state.
Fintiri urged farmers to ensure that their certified seeds were well stored after harvest.
He appealed to the partners to devise means of providing farmers with good natural fertilisers.
“This is to protect the crops as well as the health of the farmers and the entire citizens against the negative effect of chemical fertilisers,” he said.
Chief of Party, Feed the Future Nigeria Integrated Agricultural Activity, Mr Prakash Silwal, said that no fewer than 30,000 farmers had been trained on modern farming techniques.
He noted that the fair was an opportunity for producers of various crops, seeds and food, among others, to sell their products.
Permanent Secretary, Ministry of Agriculture, Mrs Dorathy Augustine, noted that the initiative had impacted positively on the agriculture production in the state.
She said that the improvement was made possible by the awareness raised among farmers on the importance of quality and improved seeds production.
Umar Hamidu, a participant, said that the knowledge acquired on modern farming techniques and improved seedlings had boosted his agricultural activities. (NAN)
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